This study investigates the multifaceted impact of inflation on consumer spending, with particular emphasis on the roles of purchasing power erosion, inflation expectations, behavioral responses, and demographic variations. Drawing on empirical evidence and theoretical insights from over twenty scholarly sources, the research explores how inflation influences both essential and discretionary spending, alters consumption patterns, and reshapes financial decision-making. Key findings highlight that high inflation typically reduces real household income, encourages precautionary savings, and leads to shifts toward necessity-based or discounted goods. Moreover, consumer expectations about future inflation significantly affect the timing and nature of purchases, especially for durable goods. In addition to economic determinants, psychological factors such as money illusion and consumer confidence are shown to play critical roles in spending behavior. The study also identifies a research gap in the context of localized and demographic-specific responses to inflation, as well as the integration of digital payment trends in consumption behavior. This research contributes to a deeper understanding of the inflation-consumption nexus and offers practical implications for policymakers and businesses aiming to adapt strategies during inflationary periods.