Hyperinflation is defined as abnormally high inflation. In general, hyperinflation occurs when the year-on-year CPI exceeds 1000%. In this situation, citizens suffer a continuous and extreme loss of purchasing power. Consumption soars as the population, fearful of continuous price increases, chooses to buy before prices rise again. As a result, wages rise almost daily but not enough for workers to maintain their purchasing power.
Hyperinflation is usually caused by the excessive issuance of money by governments to finance their expenditures. This is a very serious situation which, if prolonged, can lead to the impoverishment of the middle classes as their purchasing power disappears
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