What is lsquo Inflation tax rsquo ........

Economic Affairs Inflation

What is ‘Inflation tax’?

Implicit Tax on Cash Holdings due to inflation

Fiscal stimulus given by the government owing to high inflation

Inflation caused by deficit financing, which erodes peoples’ income, thus effectively acting as a tax

Adjustment in official tax rates in a response to the Inflation in the economy

Inflation tax is not an actual legal tax paid to a government; instead "inflation tax" refers to the penalty for holding cash at a time of high inflation.
When the government prints more money or reduces interest rates, it floods the market with cash, which raises inflation in the long run. If an investor is holding securities, real estate or other assets, the effect of inflation may be negligible.
If a person is holding cash, though, this cash is worth less after inflation has risen.
The degree of decrease in the value of cash is termed the inflation tax for the way it punishes people who hold assets in cash, which tend to be lower- and middle-class wage earners. It is noteworthy that even deficit financing (sometimes leading to high inflation) can act as a tax on people which actually was intended to boost demand in the economy