Who is hurt the most from inflation?

There are also several entities and types of consumers who can be hurt by increased inflation. These include:

• Savers. If you're the type that likes to store money in your mattress for a later date, inflation can do a lot of damage. That's because the amount of money saved doesn't change, even though prices for everyday goods and services are. That reduces the buying power of said savings.

• Those on Fixed Incomes. Retirees and people on disability will suffer from having their buying power decreased until their fixed income is increased, but that doesn't always happen. For the most part, fixed incomes can be easily made inadequate by inflation.

• Borrowers on variable rates. Borrowers without fixed rates can be harmed by inflation because they might find themselves paying far more over time.

• The Economy. It's no secret that walking inflation can damage the economy. That's because as buying power decreases, the things needed to create balance don't always occur. For instance, while inflation has been steadily increasing over time, the wages workers are paid haven't kept up.