I am going to give you an example of who might be impacted, using mine and my colleagues spending habits. So inflation went sky high, rents went up, interest rates went up, food bills went up and energy/fuel bills went up.
Amongst my colleagues who work in the public sector and earn a maximum of 36.5k, this means no/less holidays/short breaks, or choosing much cheaper options, such as camping. Can't remember the last night out that wasn't held at someones house, less if anything spent on takeaway's, coffee's, lunch's from local businesses. Less spending in local independent shops, more spending online using credit for essentials like school shoes. Less spending on things like hair appointments, quite a few are using model for trainee opportunities. Most people are using Vinted or charity shops to update their and their childens wardrobes. Clubs for their children are being massively cut back, most are still doing swimming from a 'it might save their lives' point of view and maybe football, but anything else is seen as a luxury they cannot afford. Not one of them is going to go out into our local town Christmas shopping, they are all buying via online sites where the cost can be spread. nobody is planning on moving house, buying larger purchases unless absolutely necessary, decorating, having extensions, garden projects/upkeep etc. We are not having a Christmas party or get together this year, because everyone is skint and can't afford it.
And remember we are all earning less than the median average wage in the UK, despite most of us having been in the job for between 5-20+ years !
Wages are important to businesses in more ways than one, if people don't have any money left for discretionary spending, then those businesses who rely on it are going to struggle, and those businesses who supply those businesses will also struggle.
And we are paid relatively decent wages in the grand scheme of things !