Currently there are a number of macroeconomic problems which hinders the survival of the people of which inflation is a first and knife-edge problem. The research is carried out in Ambo town, which is located in Oromia regional state Western Shoa Zone, Ethiopia. It deals with the overall effects of price hike of food grains on different groups of consumers with different income levels in Ambo town. While conducting the research Descriptive type of research is employed. Both from primary and secondary data were used. Primary data is collected from consumers of the town, which are randomly selected whereas; secondary data is gathered from the bureaus that the issue is concerned. Great emphasis has given for some selected variables, which are directly related with title of study.