Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period of time. It is the constant rise in the general level of prices where a unit of currency buys less than it did in prior periods. Often expressed as a percentage, inflation indicates a decrease in the purchasing power of a nation’s currency.
The rate of inflation has a huge impact on an individuals financial situation, affecting mortgage payments, savings and the cost of weekly shopping.
The state of a nation’s economy is determined by how the price of goods and services we regularly spend money on changes over time. It’s generally accepted that low, predictable growth is best for everyone. The global inflation rate is currently around 3.6%, according to the International Monetary Fund.
But if inflation is too high or if it is volatile, it is difficult for businesses to set the right prices and for consumers to plan their spending. If prices go up drastically in a short period of time you can’t buy as much with the same amount and it can be hard to work out how much your money is worth.
Some countries that are slowed down by political and economic instability are facing cripplingly high inflation rates, according to data compiled from Trading Economics.
Here’s a look at countries with the highest rate of inflation.
Source: World Economic Forum, Investopedia