Typical losers:
- Savers and savers
- Retirees living on a fixed income
- Variable variable interest rate borrowers
- Exporter
--Uncertainty in the global economy
- In an inflationary environment, traditional savers are clearly losers.
As prices continue to rise, the purchase value of money falls, and so does the real value of savings. Some might argue that savers are beneficiaries of rising interest rates on deposits, but this could have a serious time lag.
Borrowers on variable variable rate mortgages or personal loans will see higher interest rates, which will have a negative impact on cash flow.
Exporters will also lose — as commodity prices become more expensive than other countries, it will lose competitiveness in macro-global demand.