| 1- If prices of the goods/services you buy increase more than your nominal income, you might have a lower standard of living eventhough you have a higher income (it's not the increase of nominal income that hurts you, but the increase of everything else)
2- Not all prices necessarily increase by the same percentage at the same time... if you happen to buy more goods that increased a higher percentage than someone else, than you're more affected by inflation that this other person. |