Inflation is certainly a problem when it comes to ready cash that isn't invested or earning anything. Over time, it'll erode the value of your cash and bank account. It's also the enemy of anything that pays a fixed rate of interest or return. But individuals with assets that can appreciate in price, like a home or stocks, may benefit from inflation and sell those assets at a higher price.  In general, economists like inflation to occur at a low, steady rate. It indicates a healthy economy: that goods and services are being produced at a growing rate, and that consumers are buying them in increasing amounts, too.  In the US, the Federal Reserve targets an average 2% inflation rate over time. When inflation starts mounting higher than that or changes quickly, it can become a real problem. It's a problem because it interferes with how the economy works as currency loses its value quickly and the cost of goods skyrockets. Wages can't keep up, so people stop buying. Production then stops or slows, and an economy can tumble into recession.