187k views
5 votes
What does an inflation rate of 1300% mean?

User Josh Kelly
by
6.4k points

1 Answer

5 votes

Inflation is the measure of the rate at which the average price of a series of selected goods increases over a period of time. So, a 1300% inflation rate would mean that the selected goods increased by 1300% over a period of time. This would ultimately lead to a drastic decrease in the purchasing power of a citizen using that currency as it would take a lot more of the currency to buy a loaf of bread.

User Ethan Barron
by
6.6k points