•Inflation refers to a situation in which the economy’s overall price level is rising.
•The inflation rate is the percentage change in the price level from the previous period.
–Not all prices rise at the same rate during inflation.
–Not everyone suffers equally from inflation.
–Although inflation makes some people worse off, it makes some people better off
•Hyperinflation is an extraordinarily high rate of inflation such as Germany experienced in the 1920s.
•Hyperinflation is inflation that exceeds 50% per month
