yes inflation always destroy the purchasing power:
- inflation can be defined as the decrease in purchasing power of
the money or the increase in price level.
- purchasing power is the goods and service buying power of the
money. The increase in prices of goods and services decrease the
power of money to buy goods and services.
- inflation and purchasing power have negative relation the
increase in inflation rate means decrease in the purchasing power
means we can buy less amount of goods and services from the unit of
money.
- inflation destroy the purchasing power as it decreases the
demand for goods and services by people.
- the increase in inflation reduces the real income of the people
which leads to decrease in their aggregate demand due to low
purchasing power of currency.
- the high inflation decreases the savings due to increase in
expenditure on consumption which leads to decrease in the future
purchasing power of people as they have low savings