Consumers with fixed-rate mortgages and other loans that don’t fluctuate based on prevailing interest rates may have an easier time paying those preexisting debts, especially if their wages are exceeding rising prices broadly, according to James Devine, an economics professor at Loyola Marymount University. “On the one hand, people gain from inflation (as debtors) but on the other they lose if their money wages fall behind inflation (as wage-earners),” Devine said in an email.
Source: CNBC
Inflation Poses a ‘Clear and Present Danger,’ Says Manchin: Economists Weigh in on How It Can Hurt and Help Consumers
