Employees in poor bargaining positions lose out People in low paid jobs with little or no trade union protection. This is because inflation erodes the real value of existing debts. Also the rate of interest on loans may not cover the rate of inflation. Although businesses are aware of what has happened to prices in the past, they cannot be certain what ill happen in the next few months and years. Budgeting becomes difficult and this may affect investment.
Inflation is a very important issue and thus it does matter.