How does inflation typically affect the purchasing power of consumers in an economy?

Inflation is when prices of goods and services rise over time, which means that the same amount of money buys fewer things. When inflation occurs, the purchasing power of consumers decreases because they need to spend more money to buy the same items they could have bought for less in the past. For example, if a loaf of bread costs $2 today but rises to $2. 50 next year due to inflation, a consumer needs to pay more to get that bread, reducing what they can buy with their money. This can make it harder for people to afford everyday necessities, leading to a decrease in their overall quality of life.