Does inflation always cause workers losses due to decreases in real wages? Why or why not?

Answer 1

During most inflationary periods, all prices are rising, even wages, which are the prices of labor. Workers often assume that inflation is "robbing" them of income when, in fact, as prices go up, wages usually rise faster. Data from the U.S. economy reveal that wages and prices have been climbing together throughout most of the twentieth century. Real wages have risen rather steadily since the rise in nominal wage levels has exceeded the increase in price levels. This process has occurred whether inflation rates have been high or low. Real wages have fallen during certain short-term periods, notable during the 1980s, but this was not a period of very high inflation. Real wages generally rise because of increases in labor productivity and are not significantly affected by inflation.