Inflation does benefit people who are in debt (who are mostly in the bottom 20%), because it means that they can now pay back the money they previously borrowed

Inflation does benefit people who are in debt (who are mostly in the bottom 20%), because it means that they can now pay back the money they previously borrowed with money that is now worth less. This is basically necessary for the modern economy to function, because without it (or some form of debt jubilee) the share of income allocated to repaying debts would approach 100%. On the other hand, prices tend to rise faster than wages, so too high inflation can be bad for the working class.