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Inflation comes with a rise in other prices and, typically, an increase in income. Debt is generally has a fixed numerical value for its principle that is not touched (directly) by inflation.
If I have $100 in debt, make $1000/month, and a candy bar costs $1, I have 100 candy bars of debt or 1/10 of a month of debt.
If my debt stays at $100 but inflation increases my wages to increase to $2000 and the price of a candy bar to $2, I have 50 candy bars of debt or 1/20 of a month of debt.
While my debt stayed the same, I effectively owe less money thanks to the 100% inflation in that period.
Now, this can get more complicated due to debt generally having interest payments as well as the principle amount. Depending on how the interest is calculated, this may partially or fully counter the effect. Higher inflation generally means higher interest rates, which may be applied to existing debt or only to new debt, depending on the debt contracts. Higher interest rates makes debt less affordable.
Additionally, if I want or need to spend more money than I take in, my deficit will be larger meaning I will be taking on more debt than before. Going back to the example, if I wanted to borrow money for a candy bar, before inflation I’d only need to borrow $1, while afterwards I need to borrow $2. However, as the percentage related to income is the same in both cases, the *meaningful* amount of this new debt remains the same.
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