Who is affected most by an increase in the cost of living?

The cost of living is the amount of money needed to maintain a certain basic level of living and consumption in a particular country or region. It includes basic expenses such as housing, food, taxes, and health care. Increase in cost of living can be paired with inflation in the economy. The rise in the general price level in the economy is called inflation. Inflation affects every economic unit of the economy- consumers, firms, business units, and the government. Fixed incomes earners like pensioners, daily wage earners, manual workers, small vendors, workers in small enterprises and in private low-income jobs are all badly affected by the continuous rise in prices. Income of the consumers adjusted to present inflation is the real income. Their money income does not change during inflation. So they are forced to cut down their consumption which again reduces their standard of living as they have to pay more for everything.