Inflation redistributes income from people who do not raise their prices to people who do raise their prices.

Question

Quizplus · Accepted Answer

Inflation tends to benefit those who can increase the prices of the goods or services they sell (such as businesses) at a rate higher than inflation, while it disadvantages those whose income does not increase at the same pace, such as fixed-income earners or workers with stagnant wages, effectively redistributing income from the latter to the former.

Inflation Redistributes Income from People Who Do Not Raise Their