Final answer:
In the sixteenth century, those who relied on fixed incomes and wages like laborers and peasants were hit hardest by Europe's inflation. Merchants and landlords, on the other hand, were able to take advantage of the situation.
Step-by-step explanation:
In the sixteenth century, Europe experienced a significant increase in inflation due to various factors such as the influx of silver from the New World, population growth, and the debasement of currency. The group that was hit hardest by this inflation were those who relied heavily on fixed incomes and wages, such as laborers and peasants. Since their incomes remained stagnant while the prices of goods and services increased, their purchasing power significantly declined.
For example, let's consider a peasant who earns a fixed wage of 10 shillings per week in the beginning of the century. As inflation occurs, the prices of basic necessities like food and clothing increase. Let's say the price of a loaf of bread doubles from 2 shillings to 4 shillings. The peasant's wage remains the same, but now they can only afford 2.5 loaves of bread instead of the previous 5 loaves.
On the other hand, merchants and landlords who owned property or engaged in trade were able to take advantage of the inflation. They could increase the prices of their goods and services, effectively offsetting the impact of inflation on their wealth. So, while the lower classes suffered the most, the upper classes were relatively insulated from the worst effects of inflation.
Learn more about impact of inflation on different social groups