Personal Finance

What Is Hyperinflation?

Hyperinflation is extremely rapid and out-of-control inflation, in which prices rise so quickly that money loses its value within weeks or days. A widely used academic definition is inflation above 50% per month. It is usually linked to large-scale money creation to finance government spending.

Historical Examples

Well-known cases include Germany in the early 1920s, Hungary after World War II, and Zimbabwe in the late 2000s.

Compounding Effect

Because monthly price increases compound, 50% a month adds up to more than 12,000% over a year.

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🎈 Inflation Calculator Future cost and buying power of money for any inflation rate. Calculate → 📈 Compound Interest Calculator See how your money grows with compound interest and regular monthly contributions. Calculate →

🔗 Related Terms

Inflation Consumer Price Index (CPI) Purchasing Power Stagflation Exchange Rate

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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.