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

Anyone holding onto money in a bank account or investment with little or no return, or anyone on a relatively fixed income will see a loss of purchasing power with no additional money to make up for it.