What economic term is associated with extreme devaluation of currency leading to skyrocketing prices?

Hyperinflation refers to an extremely rapid and out-of-control price increase in the economy, which occurs when a country experiences a significant devaluation of its currency. This devaluation can result from various factors such as excessive money supply, loss of confidence in the currency, or economic instability. During hyperinflation, prices can rise dramatically in a very short time, making it nearly impossible for consumers to keep up with the increasing costs of goods and services.

In contrast, deflation indicates a decrease in the general price level of goods and services, which is the opposite of what occurs during hyperinflation. Stagnation describes a situation where the economy experiences little or no growth while dealing with stagnant prices or high unemployment, not necessarily linked to currency value. Recession refers to an economic decline characterized by falling GDP and increased unemployment, which can lead to inflation but does not inherently imply the extreme price increases seen in hyperinflation. Thus, hyperinflation is the term that best describes the scenario of extreme currency devaluation leading to soaring prices.