7% inflation is exponential in 10 years i.e prices would double.

"A quantity grows exponentially when its increase is proportional to what is already there. A common example is compound interest, where $100 invested at 7% per year annual compound interest will double in 10 years! Exponential growth applies to populations, too -- if a population grows at 7% per year, it, too, will double in 10 years."

Of course inflation would have to stay at 7% for the entire 10 years for it to be exponential. But it also means an inflation rate of 14% is exponential in 5 years.

Re: Mexico Inflation Rate Hits Highest Level in Over 16 Years

I remember back in the inflationary 1980's I would change as little money as possible at a given time because the difference in exchange rate just between morning and afternoon could make enough difference to cover the price of a meal. Locals would give discounts for USD and then stuff their mattress to hedge against inflation. Those were pre-cell days. Pay phones used centavos and none were to be found. The exchange exceeded 3,000 + pesos to the USD, so who uses centavos? Finally Telmex made some of the phones free for local calls. Those were not good economic times. I really hope that sort of inflation does not return.