What is "Hyperinflation" meaning?

Hyperinflation is an economic condition characterized by rapidly increasing prices of goods and services. It occurs when the inflation rate exceeds 50% per month, disrupting the economy and causing severe currency depreciation.

Example

"The country faced hyperinflation, and the cost of everyday goods like bread and milk doubled within a week."

How is "Hyperinflation" used in business?

In business, hyperinflation affects pricing strategies, supply chain stability, and the overall purchasing power of consumers. Companies operating in hyperinflationary environments may struggle to maintain profit margins and financial stability.

Pro Tip

During periods of hyperinflation, businesses should consider price adjustments, hedging strategies, and diversifying revenue streams to protect against rapidly changing market conditions.

Related Terms

Inflation, Currency Devaluation, Economic Instability, Price Index