Hyperinflation

Hyperinflation – Hyperinflation is an extreme economic condition marked by a very rapid and uncontrolled rise in prices, resulting in the severe erosion of a currency’s real value. This phenomenon usually occurs when a government prints excessive amounts of money to cover budget deficits, leading to a sharp loss of confidence among consumers and investors. As prices soar daily—or even hourly—the currency becomes nearly worthless, savings are wiped out, and normal economic activity is disrupted. People often resort to bartering or using foreign currencies for stability.

Example: Zimbabwe experienced hyperinflation in the late 2000s, with inflation rates reaching an estimated 79.6 billion percent per month in November 2008, rendering its currency practically unusable