https://www.stlouisfed.org/on-the-economy/2022/aug/inflation-real-value-debt-do… Created Mon, 01/08/2022 - 19:30 Updated Mon, 01/08/2022 - 19:30 The recent bout of inflation will immediately reduce the real value of existing debts, but it will also tend to raise expected inflation. This could raise future borrowing costs.