What is runaway inflation?

Runaway inflation refers to an extremely high and accelerating rate of inflation, typically exceeding 50% per month. This phenomenon can lead to a rapid decline in the purchasing power of currency, eroding savings and causing economic instability. It often results from a combination of excessive money supply, demand-pull factors, and loss of confidence in the currency. In severe cases, it can culminate in hyperinflation, where prices skyrocket uncontrollably.