If you have debt, inflation eats away at that debt. If you’re paying 5% per year on that debt, but inflation goes up 3%, you’re actually only paying 2% on that debt. That’s good for people who have debt, and bad for the people who invested the initial money for that debt. With deflation, it’s the opposite.

This assumes your wages go up with inflation, though. Over the long term, that does tend to happen, but there are certainly periods where that is not true.