How does inflation disproportionately affect the standard of living among different income groups, particularly in terms of consumer behavior and income inequality?

Inflation is when prices for goods and services rise, which can make it harder for people to afford what they need. For low-income families, even a small increase in prices can mean they have to cut back on essential items like food and housing, leading to a lower standard of living. In contrast, wealthier individuals may be able to absorb these price increases more easily, as they spend a smaller percentage of their income on basic needs. For example, if the price of groceries goes up by 10%, a family earning minimum wage might struggle to buy enough food, while a wealthy person may hardly notice the change. This difference in how inflation impacts various income groups can widen the gap in income inequality, making life tougher for those already struggling.