- (economics) A very high rate of Inflation.
- There is no precise quantitative level that defines hyperinflation. A conventionally used threshold is 50% annual inflation.
- At hyperinflationary levels, both the money supply and the price level are inflated at great rates.
hyper- + inflation
hyperinflation - Investment & Finance Definition
A significantly high rate of inflation that damages an economy because it restricts people’s ability to purchase goods and services. The level at which inflation becomes hyperinflation is arbitrary. Some economists say that the monthly inflation rate must be 50 percent in order to be considered hyperinflation; others say that monthly inflation must be 100 percent or more. Hyperinflation has mostly been a problem in the 20th century, with Germany as a prime example. From August 1922 to November 1923, Germany’s monthly inflation rate was 322 percent, which means that prices effectively quadrupled each month during that period.