The ideal function of inflation is to allow the economy to slowly reorganize.
If a function gets less valuable, due to any number of circumstances, the 'correct' thing to do from a resource allocation standpoint is allocate fewer resources : I.e. fewer workers should do that thing. In the labor economy, demand is signalled by wages. Reducing wages lowers the pool of supply that can be tapped, and allows those workers to do other more valuable work.
It is a beautiful theory.
In practice, people hate when wages go down and it leads to all kinds of social problems. Planned inflation allows this process to occur while psychologically skirting the reduction in nominal wages. That's the whole point.
There are further problems with the theory, such as people not really being fungible across available opportunities (due to the level of specialization required to be a worker in most fields) preventing the kind of labor mobility that would allow labor redistribution to function optimally. But the general premise makes sense when viewed entirely dispassionately.