In my opinion, the impact of inflation on household savings could be negative if the increase in goods on the market is uncontrolled, thereby reducing purchasing power. However, inflation can have various impacts on society, both positive and negative, depending on a number of factors including the level of inflation and the industrial sector.
its always the purchasing power that plummets and yet people just overlook it, the inflation affects heavily on household saving even more apparent with the monthly spending of a household its not rare that nowaday people hardly save money because they struggle to make ends meet.
so it does have negative impact but good thing world economic condition has been getting better since pandemic now most of inflation rate also keeps up with salary growth but we definitely not talking about blue collar job with stagnating income, the government really need to look into that.
makes me wonder if the average household could overcome this, investing won't be any better either, since its mostly time constraint and most of household can't afford their money locked for period of time, also APY sometime doesn't really outweigh inflation even if we invest in the high performing investment, the investment that has higher APY always carries risk, most household also can't risk of losing money and then become homeless.
those definition above is good to understand how purchasing power is the one that got affected most, but finding solution is also hard thing.
the fact that based on your study mentioned that lower income household having hard time saving means they are just few steps away from poverty.
It is true that many households cannot overcome this situation easily, especially since long-term investments are not always a realistic solution. Limited time and funds, coupled with the risk of losing capital, make many households reluctant to lock up their money in investments where returns are not guaranteed. High APY investments often come with significant risks, which can push low-income households into poverty if losses occur. In addition, high inflation can reduce the real profits from these investments, so that purchasing power remains affected. Practical solutions that can help include policies that support cost-of-living savings, such as energy subsidies, food assistance, and affordable housing programs. Financial education and access to more affordable and low-risk financial products are also very important. With this multifaceted approach, low-income households can maintain their financial stability and avoid poverty.