Is stagnation really that bad?? Why year on year inflation is considered good?

Hi everyone, im new here but thanks for taking the time to read my question.

I’m trying to understand why moderate year-on-year inflation is generally considered beneficial for an economy.

From what I understand, inflation discourages people from holding idle cash, since savings lose value over time. This pushes individuals to invest, which in turn increases the flow of money into financial institutions. That capital can then be used to provide loans and support business growth.

However, I’m struggling to reconcile this theory with what I see in India. In practice, wages often don’t keep up with inflation, which reduces real purchasing power for salaried workers. As prices for goods and services rise year after year, many households are forced to take on debt just to maintain their standard of living or purchase assets.

It also seems that inflation may amplify inequality. Large corporations often have the pricing power to pass increased costs onto consumers, while small businesses and salaried individuals have far less negotiating power. This can contribute to affordability issues and financial stress for ordinary people.

In contrast, stagnation or stable-price environment might make long-term planning easier. Businesses and consumers could better estimate supply, demand, and future costs. While this might reduce the incentive to invest aggressively, it could also encourage companies to compete more on efficiency and value rather than relying on price increases.

there are not many example of countries that aim for stagnation, so while i hear all warning bells for Japan, the ground reality seems fine. the recent inflation and low interest rates cooked them. soo my point may stand ig…

So my question is: why is inflation still widely seen as “good,” despite these downsides? And under what conditions does inflation actually benefit the broader population rather than disproportionately helping financial institutions or large corporations?

Clearly im missing a lot. can someone explain me