Quick Definition

Hyperinflation is an extremely high and typically accelerating rate of inflation, often exceeding 50% per month, which erodes the real value of the local currency, leading to a collapse in consumer confidence.

Examples

• 1In Zimbabwe during the late 2000s, hyperinflation reached an annual rate of 89.7 sextillion percent, causing prices to double every day.
• 2In post-World War I Germany, hyperinflation led to the value of the Reichsmark plummeting, requiring people to carry wheelbarrows full of money to buy basic items.
• 3In Venezuela, hyperinflation has been ongoing since the early 2010s, leading to severe economic instability and a humanitarian crisis.
• 4In Hungary after World War II, hyperinflation peaked so high that the government had to issue a new currency.

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