Such extra costs must be borne by some entities within the economy. Furthermore, price revisions for a large number of products at varying times and differing scales could hinder the efficient allocation of economic resources, while uncertainty regarding price fluctuations would also add risk premiums to transactional costs.
In some cases, it might become difficult to conclude long-term contracts, thereby affecting plans for consumption and investment. In addition, if price fluctuations cause a change in the value of financial assets and liabilities that are fixed in nominal terms, or in the real value of transactions and wages, distortions would arise in income distribution.