Inflation Has No Effect On: Your Buying Power

Even if your salary keeps up with inflation, a higher nominal salary might push you into a higher tax bracket, leaving you with less take-home pay in real terms. 3. Impact on Fixed-Income Earners

The only way inflation would have "no effect" is if your income increased at the exact same rate (or higher) than the cost of living. inflation has no effect on your buying power

Wages are often "sticky." They tend to lag behind inflation. Even if you get a 3% raise, if inflation is 6%, you have effectively taken a 3% pay cut in terms of what you can actually buy. Even if your salary keeps up with inflation,