How does inflation affect a country?

Inflation is often misunderstood by those who are not familiar with how economies and financial markets work. Because inflation is defined as the rate of how much prices of consumer goods are increasing, people mistakenly believe that it is a negative phenomenon that causes their money to have less value. While that is true, inflation is actually beneficial for countries. Healthy economies will inherently see the prices of its products and services rise as they expand. Since a country with a growing economy often means that most of its citizens hold jobs with rising wages, domestic demand will naturally go up as well, pushing prices up. On the other hand, the lack of inflation is a trait that can be seen in countries that are in a recession or are posting minimal economic growth. In these cases, their economy is actually shrinking, meaning that its consumers have less money to spend, which pushes demand in markets down along with prices. What is undesirable about inflation is if it is extremely high. Should prices begin skyrocketing, consumers could go on a buying spree thinking that they won