Costs/ affects arise when there is unanticipated inflation

 1. Creditors lose and debtors gain if the lender does not anticipate inflation correctly. For those who borrow, this is similar to getting an interest-free loan. 

2. Uncertainty about what will happen next makes corporations and consumers less likely to spend. This hurts economic output in the long run. 

3. People living off a fixed-income, such as retirees, see a decline in their purchasing power and, consequently, their standard of living. 

4. The entire economy must absorb repricing costs ("menu costs") as price lists, labels, menus and more have to be updated. 

5. If the inflation rate is greater than that of other countries, domestic products become less competitive.

 People often complain about prices going up, but they often ignore the fact that wages should be rising as well. The question shouldn't be whether inflation is rising, but whether it's rising at a quicker pace than your wages.

 Lastly, inflation is a sign that an economy is growing. In some situations, little inflation (or even deflation) can be just as bad as high inflation. The lack of inflation may be an indication that the economy is weakening. As you can see, it's not so easy to label inflation as either good or bad - it depends on the overall economy as well as your personal situation.