How does unanticipated inflation affect lenders and wage adjustments within an economy?

Unanticipated inflation happens when prices rise unexpectedly, and this can create problems for lenders and workers. For lenders, inflation reduces the value of the money they get back when borrowers repay loans. For example, if a lender gives out a loan with a fixed interest rate, and then inflation rises, the money returned will buy less than it did when the loan was made. Wage adjustments can also be affected because workers may expect their salaries to increase with inflation, but if their wages do not keep up with rising prices, they will feel poorer. This can lead to demands for higher wages, which may not always be met, creating frustration and potential conflicts in the workplace.