I believe this is exact definition of inflationary corruption of society. Everyone knows prices are increasing but everyone also knows money they own now is more valuable than money of tomorrow. This causes people to spend their money on many different kinds of markets, so they will be avoiding becoming poorer over time. This is net negative for society, sure, but most individuals don't know how to properly invest their money anyways. Best thing they know is to spend.
People won’t live and survive if they never spend and buy their necessities in life. So that’s already given. However, if you only focus on spending and only earn from a single source of income, you will certainly become poorer and poorer in the process. That’s why taking investment is highly introduced and encouraged. That way, even if your expenses are high since the prices of basic commodities are also highly increasing, your investment profits will also be a lot of help to you to combat your financial problems.