As of 2021, which country recorded the highest rate of inflation?
Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country. Thus, Inflation is the decline of purchasing power of a given currency over time. A quantitative estimate of the rate at which purchasing power occurs can be reflected in the increase of an average price level of a basket of selected goods and services in an economy over some period of time. The rise in the general level of prices, often expressed as a percentage, means that a unit of currency effectively buys less than it did in prior periods.
With an inflation rate that has soared above one million percent in recent years, according to "Trading Economics: Jan 2022", Venezuela has the highest inflation rate (1198.0%) in the world. Prices in Venezuela have changed so rapidly that stores stopped putting price tags on merchandise and instructed customers to simply ask employees what each item cost that day. This level of runaway inflation is known as hyperinflation.
Venezuela's economy was once the envy of South America, blessed with large per-capita wealth due to having largest oil reserves. When oil prices plunged from US$ 100 per barrel in 2014 to less than US$ 30 per barrel by early 2016, the country's economy spiraled and has yet to recover. Despite measures to improve supplies and control inflation, prices remain high and continue to hit the earnings of Venezuelan families, limiting their ability to buy goods like food and medicine.