How does unanticipated inflation primarily affect purchasing power?

Unanticipated inflation happens when prices rise unexpectedly, and this can significantly impact purchasing power, which is how much goods and services a person can buy with their money. When inflation is higher than people expect, their money loses value faster than they planned, meaning they can buy less with the same amount of money. For example, if you saved $100 and inflation suddenly causes prices to rise by 10%, that $100 will now only buy what $90 would have bought before the inflation. This can be especially hard for people on fixed incomes, like retirees, because their income does not increase with rising prices. Overall, unanticipated inflation reduces the value of money and can make it difficult for people to maintain their standard of living.