The destruction in purchasing power drives negative sentiment

 

“You never regain the purchasing power you have lost to inflation. There’s no such thing as deflation in modern monetary life…The important thing is the loss of purchasing power…that is not going to be recaptured, and that’s I think, the political significance of this number.” - Jim Grant   

The core problem with inflation in a modern era is the fact that no deflation will occur. What you lost in purchasing power will not come back. Even if your wages increase, your savings will not be able to buy the same basket as two years ago.