Negative real interest rates: if interest rates on savings accounts are lower than inflation, people who depend on the interest on their savings will be poorer. Real interest rates for millions of savers have been negative for at least four years. Cost of borrowing: High inflation can also lead to higher interest rates for businesses and people needing loans and mortgages, as financial markets hedge against rising prices and increase the cost loans. short and long term debt. There is also pressure on the government to increase the value of state pensions, unemployment benefits and other social benefits as the cost of living rises. Risks of wage inflation: High inflation can lead to increased wage demands as people seek to protect themselves. their real income. This can lead to higher unit labor costs and lower profits for businesses. Business competitiveness: If a country experiences a much higher rate of inflation than others for a considerable period of time, its exports will be less price competitive in global markets. Ultimately, this can result in reduced export orders, lower profits and fewer jobs, as well as a deterioration in a country's trade balance. A decline in exports can trigger negative multiplier and accelerator effects on national income and