Drie vormen van inflatie

Inflation is like an illness—it appears in different forms, each with its own symptoms and severity.

At its mildest, there is low to moderate inflation, where prices rise slowly and steadily, typically in the single digits each year.

People retain confidence in the value of money. They can save, invest, and plan for the future without fear of sudden changes. The economy remains stable, and financial markets operate smoothly.

Then comes the stage of galloping inflation, during which the rate of price increases to the high double or even low triple digits annually.

People begin to lose trust in the currency. They rush to spend before their money loses more value, often turning to real estate, durable goods, or foreign currency. Countries like Brazil experienced such inflationary surges during the 1980s.

At its most extreme, hyperinflation occurs. Here, prices soar uncontrollably—sometimes by several hundred to even trillions of percent a year.

The local currency becomes practically worthless. Basic transactions become chaotic as people abandon money for bartering or foreign alternatives. Economic systems break down entirely. Zimbabwe in the 2000s is a striking example.