How Inflation effect on Population & Economy.?

Answer 1

Inflation refers to the rate of a change in price level of the whole economy.
As inflation rate stays high the country will export less and import more.Country will run current account deficit. Therefore, the inflation reduces competitiveness in international trade market.

The growth of that country will slow down and unemployment will increase, because investors are not confident any more to invest when inflation rate is high.

The interest rates will increase. There will be a damage to economy as a whole (households and firms), if appropriate policies won't be used to reduce inflation.

Answer 2

Inflation reduces purchasing power. So one tend to get lesser for what one earns. Now since the price is high one has to devalue ones currency for maintaining status quo ante in exports. This will again reduce the purchasing power of the local populous which goes on in a spiral which will ultimately make ones currency worthless, like hapening in many third world countries like India.

Answer 3

kanellla is correct on the macro scale.
On the micro side the population will immediately see their cost of living increase and cost of major goods increase. Prices increase, usually at the same percentage as inflation, and therefore less is spent on 'luxury' items, which is where most real profit comes from and with fewer products bought/manufactured then less jobs. In other words a spiral effect.
This is why the United States loved Greenspan. He kept it in check.