What is the term for extremely rapid inflation exceeding 50% per month?

What is the term for extremely rapid inflation exceeding 50% per month? The answer is hyperinflation.

Hyperinflation describes an extraordinarily rapid collapse in money’s purchasing power. The often-used 50%-per-month threshold comes from economist Phillip Cagan’s 1956 study, The Monetary Dynamics of Hyperinflation. At that monthly rate, prices would rise by more than 12,000% over a year if the pace continued, so ordinary pricing and saving become extremely difficult.

Hyperinflation is commonly associated with governments financing large deficits by creating money, collapsing confidence in a currency, shortages, war, or political breakdown. People may spend wages immediately, switch to foreign currencies or goods, and demand frequent price changes. Businesses can struggle because replacement costs rise faster than revenue can be calculated.

The 50% figure is a convention rather than a law of nature; economists do not use one universally binding definition. It also differs from ordinary high inflation, which may be painful without reaching hyperinflationary speeds. Famous historical cases include Weimar Germany in the early 1920s and Hungary in 1946, whose episode is generally regarded as the most extreme recorded example.