The country with the highest inflation. Current inflation rates in different countries. At the other end of the ranking

Inflation rate this is an indicator reflecting a violation of the law of monetary circulation, which is expressed in an excess of circulating money in the economy compared to the real needs for it.

Since the transition of the world economy to a system of floating exchange rates inflation rate in fact, it became a barometer of the effectiveness of the state's exchange rate strategy.

Inflation is a process that causes the depreciation of money, the loss of its purchasing power, as a result of which the prices of goods and services rise. The inflation rate gives an idea of ​​the average value of such price changes, is calculated relative to the previous period (usually per year) and is expressed as a percentage.

Average global inflation rate

Modern inflation and its roots

The level of inflation can vary by type depending on the form of manifestation, the growth rate and the factors causing it (more about). The inflation process inevitably leads to certain consequences that affect the general economic development of the state; such consequences can have a negative connotation, therefore, to prevent crisis situations, competent policy of the monetary authorities, which is expressed in methods, is important.

The largest inflation in the world occurred in Zimbabwe. In 2008, in this small African state, according to official data, inflation amounted to 231 million percent per year, and according to unofficial data - 6.5 quinquatrigintillion percent!!!

To make it clear how high inflation was in Zimbabwe, it’s easier to give a few examples. In December 2007, a banknote of 750 thousand Zimbabwean dollars was introduced into circulation in the country, and already in January 2008 - a banknote of ten million. And off we go... in April a new banknote of 50 million dollars appeared (at the time of its appearance it cost about 1 US dollar), in May - 100 and 250 million, then more - soon citizens were paying for essential items with 5, 25 and 50 billion bills.

The government did not have time to draw zeros, and citizens did not have time to keep track of the increase in the cost of food and goods. Here is one of the clear examples of the largest inflation in the history of mankind - on July 4, 2008 at 17:00 local time, the price of one bottle was one hundred billion Zimbabwean dollars, and an hour later it was fifty billion more.

Another interesting fact: in Zimbabwe, the cheapest one cost 100 thousand dollars. If you take into account the fact that on average there are about 72 pieces in a roll, and 100 thousand can be exchanged for 5 dollars and get 20,000 bills, then it turns out that in Zimbabwe, using money instead of toilet paper is 278 times more profitable than buying toilet paper with it the paper itself.

The cause of inflation in Zimbabwe and the last straw that overflowed the cup of economic collapse was the rise in prices for bread and grains. This happened after the permanent dictator of this small African state, Robert Mugabe, took away land from white farmers.

In August 2009, the Zimbabwean government carried out a redenomination that removed ten zeros from the local dollar bill. However, inflation in Zimbabwe continued to grow, the country was running out of paper for printing money, and the leadership of this African state was forced to ban the circulation of the Zimbabwe dollar and allow the circulation of the Euro, American dollar, pound sterling and the currencies of neighboring countries with more stable economies.

Inflation is very simple: the prices of goods and services in your country are rising because... money loses its value. The cause of this economic “trouble”, leading the economy to collapse, today can be anything: wars, diseases, coups, cataclysms, mistakes of politicians (the most common reason), etc. The causes of inflation can be explained in this way. The level of production and exports in the country is falling, and accordingly the state earns less or nothing at all. Banks, the state’s currency, and the state itself, are less and less of interest to anyone as a business partner, and it begins to little by little waste its resources (gold and foreign exchange reserves), if any. Accordingly, a difficult time is coming for the people of this country, and they go to the store for groceries not with “change,” as before, but with paper bills, if the people have any. Which countries experienced the most powerful, “galloping” inflation?

1. Zimbabwe (2000-2009)

“The talk of the town” for all economists and bankers of our time is precisely Zimbabwe. This predominantly agricultural country grew and exported tobacco, cotton, tea and sugar cane. In 2000, Zimbabwean authorities began illegally confiscating land from European farmers in order to give it to local “businessmen,” most of them veterans of the civil war of the 70s. As a result, production and exports almost completely ceased. The country suffered huge losses because... foreign investors simply stopped investing in the country's economy and imposed numerous sanctions and trade embargoes. In 2008, inflation in Zimbabwe amounted to 231,000,000% per year! Those. prices doubled every 1.5 hours!!! All these years, the authorities did nothing but print new banknotes with more and more zeros. In July 2008, three chicken eggs in a store cost 100 billion Zimbabwean dollars. In 2009, the country’s president (who, in fact, started this mess) “had an epiphany,” and the country abandoned its own currency in favor of the US dollar. The situation has improved a little, but the land that was forcibly taken from farmers remains empty.

2. Hungary (1945-1946)

Devastated by the Second World War, Hungary was left without production and, as a “Hitler accomplice,” became economically dependent on the USSR. Having paid huge reparations to the participating countries, Hungary became bankrupt with huge debts and devastation in the country. Inflation did not have to wait long. At the time of its inception in 1945, the largest denomination in the country was the ten-thousandth pengo (the currency of Hungary before the forint). A couple of months later, a bill of 10 million “pengyō” was printed, a little later - 100 million, and then 1 billion. At that time, inflation reached 400% per day - prices doubled every 15 hours! Banknotes of 1 trillion, 1 quadrillion and 1 sextillion appeared... The National Bank of Hungary might have continued the search for the largest number, but in August 1946 it all ended with the introduction of a new currency - the forint.

3. Greece (1944)

In 1941, Germany, together with Italian troops, occupied Greece. Before that, the Greeks successfully repelled the attacks of the Italians. By forcing Greece to pay a huge sum for “occupation costs,” Germany paralyzed the country’s entire economy. Agriculture, the main artery of the economy, and foreign trade completely disappeared. Hunger began. Back in 1943, the largest denomination was 25,000 drachmas, and a year later a denomination of 100 billion drachmas appeared. Prices doubled every 28 hours. The population survived only thanks to barter and natural exchange. Only thanks to the competent actions of the Greek authorities, the country’s economy got out of the “debt hole.” This happened after 7 long years.

4. Yugoslavia (1992-1994)

After the collapse of the USSR, Yugoslavia also began to disintegrate. The process was actively supported by the West, and the negative result was not long in coming. Serbia, Croatia and, in fact, Yugoslavia itself appeared. Civil war began, and the UN imposed all possible sanctions and embargoes against Yugoslavia. Production and trade, even within the country, virtually stopped. Prices rose every 34 hours, and the government began to print money... From the largest banknote in 1992 of 5,000 dinars, Yugoslavia reached a denomination of 500 billion dinars in two years. The economy has completely withered, despite the visible efforts of the government. Only the German mark, introduced into circulation in 1994, was able to revive it.

5. Germany (1922-1923)

After defeat in the First World War, Germany also experienced all the “delights” of poverty. Having paid huge reparations to the winners, the authorities did their best to restrain the rise in prices for some time, but to no avail. Every 49 hours people saw new price tags, and every month they looked in surprise at new bills of even higher denominations. The largest bill was a bill of 100 trillion marks, which actually cost less than 25 dollars. In November 1923, a new currency was introduced - the “rent mark”. At that time, it saved the economy, which later became one of the strongest in the world.

6. France (1795-1796)

The French Revolution (1789-1799) occurred at a time when France's debt reached 4 billion livres! The colossal sum was formed mainly due to the reign of the most wasteful king in history - Louis XV. The main means of combating such debts was the nationalization of church lands under a bond loan - of course, with subsequent sale. In a “revolutionary impulse” they printed as many bonds as there had never been land in France. At the peak of inflation, prices rose every 5-10 days, and a pair of boots, which once cost 200 paper livres, had a price of 20,000. The coin, the franc, saved the situation. The authorities publicly burned all the paper notes in the treasury (about 1 billion livres) and all the machines for their production on Place Vendôme. Having thus begun the wholesale exchange of “paper” for “metal,” by the end of 1797 the French made the franc a stable currency for many years.

7. Peru (1984-1990)

In the distant past, the great Inca Empire, the Republic of Peru already in the twentieth century learned the disadvantages of economic progress. Due to problems in production and foreign trade, Peru's currency, “salt,” began to rapidly depreciate. In 1984, the largest bill of 50 thousand soles became 500 thousand. The authorities carried out a monetary reform and introduced a new currency - “inti”. But this move is nothing without resuscitating production and trade relations. By 1990, a bill of 1 thousand inti had become a bill of 5 million of the same long-suffering inti. In 1991, through many reforms, it was possible to stabilize the situation and at that time the “new salt” was equal to 1 billion salts of the 1984 model.

8. Ukraine (1993-1995)

Ukraine experienced one of the worst inflations in the post-Soviet space. Within 2 years, inflation reached 1400% per month. The reasons are the same as in other cases - a drop in production and export profits. The largest denomination after the declaration of independence was 1000 coupons. By 1995 it was already 1 million coupons. Without reinventing the wheel, the National Bank withdraws coupons from circulation and introduces hryvnia, changing at the rate of 1:100,000. At that time, this was equal to approximately 20 American cents.
At that time, amazing stories happened: people who took out loans to buy a car or a home, after a while paid off these loans from their monthly salary.

9. Nicaragua (1986-1991)

After the 1979 revolution, Nicaragua's new authorities nationalized much of the economy. Given the country's huge foreign debts, this caused an economic crisis and inflation. The largest bill of 1 thousand cordobas became a bill of 500 thousand in less than a year. In 1988 the old cordoba was replaced by a new one. This, of course, didn't help. In mid-1990, the “golden cordoba” was introduced, equal to 5 million new cordobas. It turned out that 1 gold cordoba was equal to 5 billion cordobas issued before 1987. This “cordo fermentation” slowed down a little, and later almost stopped when it was possible to resume the agricultural sector of the economy.

10. Krajina (Serbian) (1993)

Krajina is an unrecognized country, annexed to Croatia in 1998. But while still independent, it suffered an economic decline, because was unable to establish either its own production or trade with neighbors. In just a year, 50,000 dinars turned into 50 billion! Gradually, with battles and negotiations, Krajina was returned to Croatia, although many Serbs left...

Inflation as a result of the illiteracy of the authorities can be easily defeated, but provided that these same authorities look at things realistically. By borrowing money from other countries, a country can live without troubles, but for a very short time. Only by setting up production and establishing trade in your own goods, accumulating resources along the way, can you not only not be afraid of this phenomenon, but also successfully help others. Of course, with benefit for yourself. These are the market relations that man invented.

Economists consider inflation as an element of normal economic development if it is moderate in nature, in which price increases do not exceed 10% per year. However, there are cases when such figures were not annual indicators, but daily ones.

As a result of the influence of external or internal factors, the country experienced hyperinflation with the ensuing consequences - a sharp jump in food prices and an increase in the number of zeros on banknotes.

7. Peru (1990) – 5% daily growth

The stagnation of the Peruvian economy began in the first half of the 80s of the last century, when, as a result of the Latin American crisis, the IMF took tough measures against the state. At that time, the country's president, Belaunde Terry, tried to adhere to the reforms recommended by external creditors, which caused disapproval among the population. After the 1985 elections, Alan Garcia came to power with a populist program that only weakened the economy and led to a complete closure of access to external credit.

As a result of these actions, persistent inflation turned into hyperinflation. If in 1986 the maximum denomination of the national banknote corresponded to 1000 inti, then by 1990 a banknote with a denomination of 5 million inti was already in use.

It was in 1990 that the peak of price growth was recorded, when in August the monthly inflation rate reached 397%. The following year, the rate of devaluation of the national currency slowed down, but it was only possible to stop it completely only at the beginning of the 21st century, after replacing the inti with a new monetary unit - the sol.

6. China (1949) – 14%

After the end of World War II, China plunged into civil strife between communists and nationalists. The monetary unit was chosen as the main mechanism of the struggle for power. To finance the conflict, both sides resorted to huge budget deficits.

In 1945, the printing press worked 300 times more energetically than in 1941. This policy could not pass without a trace and led to a colossal increase in prices, which by the mid-40s were already 1000 times higher than pre-war levels.

The rapid devaluation of the monetary unit also occurred because in 1935 the Central Bank completely seized control of the national banknote and began to issue currency not backed by gold. All military costs were covered by printed money, which became more abundant in the country every day. Later, the Central Bank of Taiwan was involved in the “game,” which led to hyperinflation on the island.

To assess the scale of the depreciation of the Chinese national unit, economists provide the following figures: in 1937, $1 was worth a little more than 3 yuan, while in 1949 the American currency was already valued at 23 million yuan.

5. Greece (1944) – 18%

As a result of the occupation of Greece by the Hitlerite coalition in the period 1941-1944, the country's economy was destroyed. In addition to the fact that significant damage was caused to agriculture and foreign trade relations, the state regularly paid the costs of the occupation and provided financial support to the German army. If at the beginning of the war (1939) the Greek budget was 270 million drachmas, then a year later there was a deficit of 790 million drachmas.

Since tax revenues decreased threefold - from 67 billion to 20 billion, the leadership of the Central Bank decided to turn on the printing press. This led to hyperinflation, which peaked in 1944, when the prices of goods and services doubled every 28 hours, and the denomination of the largest banknote increased from 25 thousand to 100 trillion.

The German occupation and subsequent hyperinflation led to famine in Greece, population stratification, the emergence of black markets and a significant hindrance to economic development. The post-war government was forced to take emergency measures, including two monetary reforms in 1944 and 1953. As a result, 1 new drachma was exchanged for 50 trillion old drachmas used in the country before 1944.

4. Germany (1923) – 21%

As you know, during the First World War, Germany financed its military machine through external loans. Confident of its victory, the German government expected that all loans would be repaid by the losing side.

In addition to external debts, after the war Germany was faced with the need to pay huge reparations. In total, the debts exceeded the GDP of the country, whose leadership began to print money, gradually increasing its denomination.

Since the new banknotes depreciated very quickly, and prices doubled in 3 days, people were forced to leave their entire salary in the store in order to purchase at least some food. The peak of inflation was observed in November 1923, when one dollar was worth 4.2 trillion marks (for comparison, in 1920, $1 was worth 50 marks).

The situation was saved by introducing the Rentenmark, which was equivalent to 1 trillion papermarks that had been in circulation before. After the Rentenmark was replaced by the Reichmark in 1924, confidence in the national currency was restored to pre-war levels.

3. Yugoslavia (1994) – 65%

Yugoslavia, as a powerful geopolitical player during the Soviet era, was among the parties most affected by the collapse of the Soviet Union. Having ceased to be a link between Western and Eastern Europe, the Yugoslav Republic became a victim of intranational confrontations.

As a result of the breakup along ethnic lines into several sovereign states, the country was mired in military conflicts, which practically stopped internal trade. The situation worsened further when the UN adopted a resolution banning the export of Yugoslav products.

The newly formed Federal Republic of Yugoslavia, unlike its neighbors, remained committed to the communist system, continuing a policy of overspending and excessive borrowing, which ultimately led to a complete loss of control over the creation of money.

During the period 1993-1994, prices doubled every 34 hours, the national currency was revalued several times, and the final denomination of the banknote was 500 billion dinars. The situation was somewhat stabilized (but not stopped completely) through the introduction of a new dinar in 1994.

2. Zimbabwe (2008) – 98%

The land reform launched at the end of the 20th century by Robert Mugabe, when land previously owned by the white population began to be redistributed among the country's black residents, led to a sharp decline in the level of agriculture and practically stopped the flow of external capital.

Since the implementation of the reform was carried out, by and large, by violent methods, such actions were perceived extremely negatively by investors and international organizations (in 2002, Zimbabwe was deprived of membership in the Commonwealth of Nations due to regular violations of human rights).

The "successes" of land reform, as well as the financing of the civil war in the Congo, led to huge increases in prices and unemployment in the country. The peak of inflation was observed in 2008, when the daily price increase was close to 100%, and on an annual basis it amounted to over 100,000%. To hide the results of its policies, the Zimbabwean government even temporarily stopped publishing official data. Naturally, this did not help save the situation, as a result of which many residents of the country abandoned Zimbabwean dollars, switching to payments in American currency.

1. Hungary (1946) – 207%

In addition to the fact that the country's economy was completely destroyed after the war, Hungary had to pay serious reparations as a member of Hitler's coalition. Since all costs amounted to about half of the state budget, the treasury had to be filled by turning on the printing press. As a result, the national monetary currency penge set a world record for devaluation.

At the beginning of August 1945, $1 corresponded to 1,320 penge, two months later the rate rose to 8,200, and a month later to 108,000. However, the greatest growth of the dollar against the Hungarian monetary unit was observed in the spring-summer of 1946:

• March 1 – 1750000
• May 1 – 59000000000
• June 1 – 42000000000000000
• July 1 – 4600000000000000000000000000000

The completely abnormal growth of the exchange rate was stopped in August 1946 by introducing a new national currency - the forent, the equivalent of which corresponded to 4∙10²⁹ penge.

Most people believe that money can buy everything. But what happens if the money becomes worthless? In today's world, inflation can force you to pay twice as much for your favorite espresso the very next morning.

For each of us, the word “inflation” has its own meaning. Most often, it is interpreted as a “general increase in prices,” and along with them – an increase in the prices of all kinds of services and consumer goods.

Inflation manifests itself differently in countries around the world. Therefore, to determine its value, the so-called consumer price index (CPI) was developed: it measures the average price of goods and services, thereby making it possible to calculate the level of inflation around the world.

To put it simply, the inflation rate is the increase in world prices and prices in each country. During inflation, money tends to depreciate, which means that the ability of the population as consumers decreases. It's simple: you pay more, but you get the same amount as you received before.

As for directly the level of inflation in the countries of the world, we can say with confidence that it has no boundaries. To put this into perspective, in 2007, Zimbabwe recorded the highest inflation in the world - 230,000,000%. In the morning, people bought a bottle of water (by the way, which is a truly vital product in African countries) for 100 billion Zimbabwean dollars, and by the evening - for 200 billion.

Why does inflation occur?

Inflation rates in different countries of the world can vary dramatically. This depends, first of all, on the country’s economic policy, as well as on its development as a whole. But nevertheless, there are several main ones:

• Economic instability
• Too much emission (issue) of money.
• Budget deficit
• Global crisis (raw materials, energy, etc.)
• Problems in the tax system

Inflation in the world: who pays more?

From year to year, indicators of the level of increase or decrease in prices change, and at the same time countries change their place in the financial ranking.

In 2016, Venezuela became the country with the highest inflation in the world - 181%. Its closest neighbors are Ukraine (49%), Yemen (32%) and South Sudan (41%).

Simply put, in countries with a difficult economic situation, the depreciation of the national currency will occur much faster. Due to this, ordinary people suffer, including you.

Is inflation eating away at my savings?

Yes. But only if you store them in your secret home safe or plastic card. But why?

Every year you can buy less and less with your savings. If you want to protect your money from depreciation, you should store it in currencies or .

Using statistical forecasts, you can only try to predict what the level of future prices will be, because it can be completely unpredictable.