Term:HYPERINFLATION

Rapid and excessive inflation within an economy. Where normal inflation is measured over months, hyperinflation is measured exponentially in daily movements as high as 5% to 10%, and occurs in instances where inflation is greater than 50% over one month. Typically, hyperinflation does not occur in developed countries, but has occurred on many occasions in countries such as China, Russia, Argentina, Angola and Zimbabwe. In South Africa, the inflation rate is measured using the Consumer Price Index (CPI) and is typically between 4% and 6% per annum. In Angola, inflation for 2017 was 29.84% and 2018  it was 19.63%. Zimbabwe is probably the best example of this type of inflation, where hyperinflation went to millions of percent and eventually the currency collapsed. In June 2019, the official inflation rate was 97.9%.

Disclaimer - All information and data contained within the PDSnet Glossary terms is for informational and educational purposes only. PDSnet makes no representations as to the accuracy, completeness, suitability, or validity, of any information, and shall not be liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use. Information in the PDSnet glossary terms is based on the author’s opinion and experience and should not be considered professional financial investment advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Thoughts and opinions will also change from time to time as more information is accumulated. PDSnet reserves the right to delete any glossary term for any reason.« Back to Glossary Index