After 1 year, you have repaid $100 and have $900 left to repay. Inflation is 3%. You have $0 in your chequing account. That $0 is still worth $0 after inflation but the $900 you have to repay is now worth 3% less or $874. Inflation gained you $26. Of course, this inflation is built into your interest rate so it's only unexpected inflation that truly benefits a person.
I don’t think you understand how financing works.
Borrow $1000 to be repaid over 10 years.
After 1 year, you have repaid $100 and have $900 left to repay. Inflation is 3%. You have $0 in your chequing account. That $0 is still worth $0 after inflation but the $900 you have to repay is now worth 3% less or $874. Inflation gained you $26. Of course, this inflation is built into your interest rate so it's only unexpected inflation that truly benefits a person.