Why Is High Inflation Bad. High inflation is usually associated with a slumping exchange rate, though this is generally a case of the weaker currency leading to inflation, not the other Because the U. Wastage of resources: During very high inflation episodes (fortunately this has not happened in South Africa) prices have to be increased daily.
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Why is inflation bad Inflation in layman's term is the economic condition wherein the prices of goods and services are continuously rising. This means that too many people with too much money are chasing too few goods and services. Inflation, defined as the increase in the price of goods and services over time, has profound effects on today's economies.