Identification

The inflation rate refers to the percent change in an aggregate measure of price levels between time periods. In the United States, most economists use the Consumer Price Index, or CPI, to measure the inflation rate. The U.S. Department of Commerce calculates the CPI each month.

Geography

The definition of a high inflation rate may differ across countries, based on their own histories and experiences with inflation. The Economics Web Institute notes that a moderate inflation rate between 5 percent and 30 percent a year may qualify as high inflation in some countries. For countries with an inflation target of 1 to 3 percent, an increase of 5 percent or more a year may be considered a high inflation rate.

Hyperinflation

The term hyperinflation refers to inflation that rises at a rapid, out-of-control rate. No precise numerical definition of the term exists, however. Hyperinflation simply refers to uncontrolled high increases in the inflation rate. The Concise Encyclopedia of Economics refers to inflation increases of more than 50 percent a month as hyperinflation. Economist Stephen Hanke cites the runaway inflation that gripped Zimbabwe in 2007 as an example. He writes that, in March 2007, inflation in Zimbabwe soared 50 percent. The following month, Zimbabwe’s government devalued its currency by 98 percent.

References

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