Question

What is the impact of inflation on salaried class people?

Explain the inflation impact on the salaried class.

Answer 1

Inflation erodes the purchasing power of salaried individuals, as their wages may not increase at the same pace as rising prices. This means they can afford less with the same salary. If salary adjustments are delayed or insufficient, it can lead to a decline in their real income, affecting their ability to maintain their standard of living.