Inflation should not be modeled like in EU2, the effect was all wrong.
Government draws its income from taxes on the working population. Since wages go up with inflation, so does tax income. The purchasing power of the government does *not* decrease when you get inflation. It decreases as a result of economic collapse, not due to inflation per se.
Inflation can even be good for the government's purchasing power, since it can choose not to adjust the wages of public employees to inflation. Thereby cutting wages without saying so.
What inflation does is, it devaluates credit, savings, and fixed incomes. It effectively wipes out the savings of the middle classes and can screw over the government employees.
If it is modeled as a game effect then it should not change prices or wages. Instead it should be an event which reduces your debt by ~50%, wipes out the savings of your POPs, reduces your cost modifiers (education, administration, crime fighting, military) a little and pisses off the soldier, administrator, clerk and officer POPs. If you really want to model it in detail then your national debt should be decreased by total amount of savings that were wiped out since it should not be a zero sum game, and because nations where the people have no saved income have nothing to gain or lose from inflation.
Capitalists would not mind inflation at all because they own assets which do not lose value. In fact they should be happy because their loans are devaluled.
Craftsmen would not be very upset (maybe +1 MIL) because they have few savings and their wages will go up in pace with inflation. If the capitalist wants to keep producing goods, he has to pay those craftsmen. For farmers it's the same, they could even go without any MIL increase. After all what does the farmer care about rising prices - he's the one selling stuff! And the farmer would be more than happy if all loans were wiped out.
Labourers should be more pissed (MIL+2) because they are at the bottom of the food chain and have little bargaining power. Rising food prices hurt them a lot before they do any good.
Clerks would be very upset (MIL +4) because they depend more on savings which are wiped out. (I see them as middle class POPs).
Administrators, educators, soldiers and officers should be insanely pissed (MIL+5) because they are paid by the state and their salaries will certainly not be adjusted for inflation right away. They would go fascist and seek to overthrow the government.
The Weimar government created inflation on purpose, because they thought it would be the most convenient way to rebalance the huge budget deficit. They were also trying to garner "pity points" abroad and demonstrate that Germany was too poor to pay reparations (which it was not). So inflation should necessarily be a bad thing in the short run.
