Inflation is usually discussed as a single number, but its effects are deeply uneven. The people hurt most are those whose incomes adjust slowly — pensioners, salaried workers, and anyone on a fixed contract.

The lag is the story

Prices move quickly; wages move on review cycles. That gap, repeated over a few years, quietly redistributes purchasing power away from households that can least afford it.

Understanding the lag helps explain why a period of even moderate inflation can leave people feeling poorer despite a growing economy.