unanticipated is -- if unanticipated, can be costly for households who rely bondssions and long-term to provide a significant portion of their retirement income. because the income provided by these assets is typically fixed in nominal terms, it's real purchasing power may decline surprisingly quickly if inflation turns out to be consistently higher than originally anticipated, with potentially serious consequences for retirees as they age. rise in inflation also tends to reduce the purchasing power of labor income for a time because nominal wages and salaries are generally slow to adjust to movements in the overall level of prices. suggests that this effect is probably the number one reason why people dislike inflation so much. wages,longer run, real wages adjusted for inflation, appear to be largely independent of the average rate of inflation , and instead are primarily determined by productivity, competition, and other nonmonetary factors. in support of this view, this figure shows that nominal wage growth tends to broadly track price inflation over long periods of time. inflatio