Inflation is said to be a tax on poor.

Inflation is often referred to as a "tax on the poor" because it erodes the purchasing power of money. This means that as prices rise, the same amount of money buys less than it did before. This can be particularly hard on low-income individuals and families who may already be struggling to make ends meet.

Here's a step-by-step explanation:

1. Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

2. When inflation occurs, the value of money decreases. This means that the same amount of money can buy fewer goods and services than before.

3. This decrease in purchasing power hits the poor the hardest. This is because they have less disposable income and any increase in the cost of goods and services can make it more difficult for them to afford basic necessities.

4. Therefore, inflation acts like a "tax" on the poor, as it effectively reduces the value of the money they have to spend.

5. This is why inflation is often referred to as a "tax on the poor". It's not a literal tax paid to the government, but rather a reduction in purchasing power that disproportionately affects those with lower incomes.