Inflation

Why is unexpected inflation a societal problem?

Unexpected inflation is an issue because there is no time for the government or businesses to make price adjustments to counter inflation. If shop owners knew that inflation was coming they would be able to raise their prices accordingly. Since they cannot raise prices, the revenue they obtain from the goods they sell is worth less than what they expected. These firms, if you will, have not gained the same value from the goods/services they sold then they had in mind. Also the cost of living increases when there is inflation. Workers will not be paid as much but will need to pay more for the cost of living as their tax rate stays the same. People have less money and have to pay more...this truly is a societal problem.