Inflation has become a hot issue in Malaysia recently because it associated with the cost of living. This study helps policy maker to understand the coping strategies adopted by households in order to cope up inflation for the purpose of designing and implementing appropriate policies and programs for low income households. Therefore, this study has two objectives. First, to investigate households who are affected by inflation and second, to investigate the coping strategies adopted by households. This study conducted a survey in Penang, Kedah and Perlis using structured questionnaire to gather the information. The study concluded that almost 90% of the respondents were effected by inflation. The most effected were low income households, married and living in urban area and their coping strategies were buy less quantity, buy lower quality and less quantity and buy lower quality of goods according to the types of goods.