Household purchasing power is a key measure of economic welfare, reflecting the real value of income in terms of goods and services households can afford. Inflation remains one of the most significant macroeconomic challenges affecting household welfare in developing countries. This study examines the impact of inflation on household purchasing power, incorporating key variables such as household income, unemployment, food prices, and exchange rate fluctuations. Using a quantitative approach and econometric analysis, the study examines how these variables affect households' ability to maintain consumption levels. The findings indicate that inflation significantly reduces purchasing power, while income mitigates this effect. The study provides policy recommendations to stabilize prices and improve household welfare. In developing countries, inflation is a major threat to purchasing power, eroding real income and limiting consumption. Understanding the relationship between inflation and household purchasing power is crucial for designing policies that protect households from economic shocks.