Because of these effects of a decline in the value of money, high rates of inflation inevitably lead to a decline in the efficiency of the market economy, a decline in savings and, in the longer term, a lower rate of growth for the economy as a whole.
Other more direct disadvantages of inflation can be summarised as follows:  BIS Review 24/1997  -3-  People with fixed incomes, for example salaries or pensions, are affected more by inflation than the wealthy who can partly protect themselves against inflation, for example by investing in property or equities.