How exactly can inflation cause poverty? If there’s more money, won’t people just have more of it to offset the increasing prices?

Question

How exactly can inflation cause poverty? If there’s more money, won’t people just have more of it to offset the increasing prices?

In: Economics

Answer 1

Wages, savings and fixed pensions, which are tend to be associated with lower incomes, are destroyed by inflation. Investments and businesses, which are more the domain of the well off, increase in value with inflation.