What groups are helped by inflation?

Groups helped by inflation: Businessmen, Shareholders and Debtors or Borrowers.

Explanation:

Inflation refers to a quantitative measure of a rate at which a basket of selected goods and services’ average price level in an economy up rises over some time period. Inflation is indicative of a rise in general price level wherein a single currency unit buys less than what it did formerly. Expressed in percentage, inflation is indicative of a decline in the national currency’s purchasing power.  

GROUPS HELPED BY INFLATION

Businessmen: They gain profits subject to prices that rise.

Shareholders: They make higher profits at the time of rising prices therefore their payouts are higher dividends.

Debtors or Borrowers: They initially utilize the loan at the time of greater purchasing power. Whilst there is inflation, the real monetary value goes down. Hence the debtors don’t have to pay much to the lenders or creditors realistically.

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