PRICE EFFECTS
As the average level of prices increase, some prices increase faster than others, so more people are affected. The increase of gasoline prices in the summer of 2000 hurt truckers a lot, but barely effected people who live close to work and drive economy cars.
income effects
As some prices increase faster than others, some incomes increase faster than others.
wealth effects
Inflation redistributes income between borrowers and lenders. During the next 30 years, as prices rise, a certain price buys less and less. So as a borrower, the real value of your payment declines. Because of this, a borrower may gain from high inflation. The lender however, receives the same amount you originally paid per month, so the lender loses. If inflation is high enough the lender receives loan and interest repayment over the next 30 years will be worth LESS in real terms than the amount of money the borrower receives today. Inflation hurts lenders but benefits borrowers, especially if it is unexpected.
uncertainty
Certain prices are unknown, making it difficult to plan investment. This means that some production will not be undertaken because firms are not certain about profitability.