Winners and Losers During Inflationary Periods

A customer pumps gasoline into an sport utility vehicle (SUV) at a Shell gas station in Los Angeles, Calif., on Feb. 17, 2022. Patrick T. Fallon/AFP via Getty Images

In 2022, the inflation rate peaked at 9.1 percent. Although in August 2023 it was down to 3.7 percent, it’s starting to show signs of increasing since it was at 3 percent in June 2023. But the results of this have been higher grocery bills and gasoline purchases.

Inflation can hit many people hard. But there are aspects of inflation that benefit others. Who is hurt, and who prospers during inflationary times?

Losers:

People Who Save

Savers lose during inflationary times. That’s because when prices rise, money’s value falls. The Federal Reserve can’t change interest rates fast enough to catch up, so those who have saved all their lives can see their savings value wiped out by higher prices.