Example on how inflation has a negative impact on the economy?

Hyperinflation has negative impacts on the economy. Actually, most modern governments think moderate inflation is a good thing. It helps in labour negociations. Anyway... Economists understand inflation as a transfer of wealth from lenders to borrowers. Basically, if you're lending money and that money is worth less with time, then that's a bad thing for you, If you borrow money, and that money is worth less, that's good for you. If inflation is very high, it can discourage lending altogether, or only at very high interest rates, which slows down your whole economy. (Borrrowing money being considered the prime source of investment in most macroeconomic models). Now hyperinflation is the real problem (most governments today consider 1 - 2 percent rate to be normal). Hyperinflation means money is losing its value very quickly. It's usually a sign of loss of confidence in the economy entirelly, for whatever reason, real or imagined. In Zimbabwe, they printed the stuff like crazy. The government's solution to everything was to print more money. In the end, the ZImbabwe dollar was worthless. In that case, people scramble to buy stuff with their money before it's worth even less. There is no stability in such economies.

There are many negative impact because of Inflation on economy, individual. Don't get surprise even if Inflation has positive effects on economy.

The value of money goes up and its basicly worthless like in africa or one of those countrys, it cost a million african dollars to get a loaf of bread..

I think what Mikey intended to say it "Its value goes down" ***EDIT*** Inflation is the result of printing money, wars... etc

It will create a bubble which will burst later.