So if gasoline is $3.00 per gallon in January, $4.50 per gallon in February and $6.75 per gallon in March and the prices of food and other essentials are going up at the same pace, that would be considered hyperinflationary.

It also tends to accelerate once it begins, meaning the monthly 50% increase soon becomes 100%, then 1,000%, etc., until the real value of the currency is utterly destroyed. Beyond that point, the currency ceases to function as a currency and becomes litter, good only for wallpaper or starting fires.

Many investors assume that the root cause of hyperinflation is governments printing money to cover deficits.

Money printing does contribute to hyperinflation, but it is not a complete explanation.

As I mentioned above, the other essential ingredient is velocity, or the turnover of money.

If central banks print money and that money is left in banks and not used by consumers, then actual inflation can be low.

This is the situation in the U.S. today. The Federal Reserve has expanded the base money supply by over $6 trillion since 2008, with over $3 trillion of that coming since last February alone.