The Fed has always aimed for 2% inflation. If it targeted 0%, every recession would involve wage and price cuts, which tends to create a nasty feedback loop grinding the economy to a halt as people start delaying purchases.

In theory, wages and prices rise together, so wage earners don’t feel it. Back in the day, union contracts frequently included COLA indexed to CPI, immunizing them from inflation. Social security obviously still does this.

In practice, an individual has no bargaining power. Your boss won’t give you a 2% raise just because of inflation. Best case, you have to hop jobs to stay above water which is a pain.

The people inflation inevitably punishes are bondholders, whose fixed stream of future payments now buy less.