Inflation is the progress of money devaluation, the consequence of which is rising consumer and industrial prices. Inflation occurs when the volume of money grows disproportionately to the real supply of goods. In other words: if more money is in circulation than the goods that can be purchased with it. In a growth economy, the continuous increase in the money supply automatically leads to inflation. If the pace of inflation increases uncontrollably, this is sometimes called 'hyperinflation' or 'galloping inflation'.