There is also the psychological consequence that Inflation can have on household saving and those involved. When you are saving and then not seeing the benefit of your savings, it can be discouraging. Inflation makes the effort put into trying to save look futile and then it discourages the habit of saving in the person saving and in any other person that knows that you saving. This is another unspoken effect of inflation on household saving.  If you are someone who saves money and you have results as people see benefits from your savings, other people will be inspired to save money as you do but when you save money and then they know that there is no result to show for it is, it becomes discouraging to us psychologically and to any other person who knows that you are very consistent with saving. What is the use continuing to save money that cannot save you?