In this thesis the impact of inflation on urban household saving is investigated. For calculating sensitivity of saving respect to price changing of different groups of commodities, firstly we divided household cost to two separated groups of durable and nondurable and then by defining total income as summation of monetary and nonmonetary income of households, We consider saving as total income minuses nondurable consumption. Finally we estimated the “Extended Linear Expenditure System” model base on the prepared data. Since inflation is result of unequal changes in prices of goods and services, the approach of expenditure system allows us to assess unequal changes in prices for eight...