(a) Fixed Income Groups : Fixed income earners (i.e., wage and salary earners, pensioners etc.) suffer during inflation. It is because that their incomes do not increase in the same proportion in which prices or the cost of living rises. As a result, these fixed income earners tend to buy less amount of goods and services than before even when there is little rise in their income.
(b) Producers : Producers tend to gain during inflation. It is because that prices of their inventories (stock of goods and raw-material) go up. Prices rise at a faster rate than the cost of production. Producers get better prices for their goods during inflation.