What Happens When People Expect Higher Inflation Rates?

Expected Inflation rates increase uncertainty in the market which means that manufactures as a result start laying off employees given an anticipated increase in manufacturing costs. The interest rates are increased to manage the anticipated time value of money. With a little or less likely chance of increase in salaries to cope with the high commodity prices there's a sharp decline in the demand for consumer products. It also affects the saving rates as people may start rationing in some cases for eg., meat products which again is a contributing factor in price inflation. It spreads panic which may affect several other sectors adversely like the real estate.