Inflation is accompanied by an increase in prices, so this phenomenon has a rather negative impact on the welfare of citizens. In some countries, the rate of inflation is amazing.
Inflation does not always have negative consequences. If it is controlled by the state, then it can even stimulate the economy, reduce the amount of public debt and help raise wages. In the opposite cases, inflation causes serious damage to the well-being of citizens, because real purchasing power is falling.
World records for inflation
One of the highest levels of inflation, which was recorded in world practice, was noted in 2008 in Zimbabwe. According to official data alone, annual inflation reached 231 million%, and according to unofficial data - 6.5 * 10108%. In just one hour, prices in stores could rise by 50%. The impetus for hyperinflation was the decision of the Zimbabwean authorities to expropriate land from white farmers and transfer it to blacks. This was the last straw that exacerbated the already difficult economic situation in the country.
Post-war Hungary in 1945-46 became another record holder in terms of inflation. Every 15 hours, prices in the country doubled at a colossal rate of 4.19 * 1016%. In 1946, inflation in Hungary reached 400% every day, prices increased fivefold, and bills instantly depreciated.
The highest inflation in the world at the end of 2013
At the end of 2013, the site 4/7 Wall St. identified a number of countries with the highest inflation rates. Venezuela took the leading position, where annual inflation was 42.6%, while GDP growth was only 2.6%. The worsening economic situation in Venezuela is associated with the death of Hugo Chavez. Meanwhile, the oil business is keeping the country's economy afloat for now.
Argentina is in second place with an inflation rate of 21.1% and a GDP growth of 3%. It is worth noting that these are unofficial estimates; the government publishes smaller figures on inflation rates. But the problems in the country's economy are obvious and they cannot be solved by restrictions on the import of foreign currency.
The difficult political and economic situation in Egypt leads to a high inflation rate in the country, which in 2013 amounted to 10.3%. At the same time, the unemployment rate in Egypt is quite high - 13.3%. Due to the ongoing unrest in the country, the tourist flow is decreasing, and many foreign companies are forced to withdraw their personnel.
The list of countries with the highest inflation rates also included India (inflation - 9.6%, GDP - + 4.8%), Turkey (inflation - 8.9%, GDP - + 3%), Indonesia (inflation - 8.6%, GDP - + 5.8%), Pakistan (inflation - 8.3%, GDP - + 6.1%), Vietnam (inflation - 7.5%, GDP - + 5%), Russia (inflation - 6.5%, GDP - + 1.2%) and South Africa (inflation - 6.3%, GDP - + 2%).
Highest inflation in Europe in 2013
Among European countries, the highest inflation was observed in Belarus (14.9%) and Russia (6.1%). The UK and Finland (1.9%), Estonia (1.6%), Austria and Luxembourg (1.5%) followed by a wide margin. Opposite phenomena (deflation) were recorded in Cyprus (-1.6%), Greece (-1.4%) and Bulgaria (-1.3%).
