Hyperinflation is inflation so severe that prices can jump by the day or even the hour. Money stops working as a store of value, contracts break down, and people rush into hard assets, foreign currency, or barter. Causes usually include large money printing, fiscal collapse, and a loss of trust in the currency. Ordinary savers suffer most if wages and deposits cannot keep up. Central banks and governments eventually need a credible stabilisation plan to stop the spiral.
Key takeaways
- Hyperinflation is rare, extreme, and socially destructive.
- It is far beyond ordinary single digit or moderate double digit inflation.
- Cash and local currency deposits lose value fastest in such episodes.
- Policy credibility and fiscal control are needed to restore stable prices.