What is one primary effect of unanticipated inflation on fixed-income earners?

One primary effect of unanticipated inflation on fixed-income earners is that their purchasing power decreases. Fixed-income earners, like retirees who rely on pensions or bonds, receive a set amount of money regularly. When inflation rises unexpectedly, the prices of goods and services go up, but their income remains the same. For example, if a retiree receives $1,000 a month, but inflation causes prices to rise, they may find that their money buys less than it used to. This means they can afford fewer necessities like food and healthcare, making it harder for them to maintain their standard of living.