What is one result of high inflation?

High inflation signifies a general increase in prices for goods and services over time. When inflation rises, the value of currency decreases, meaning that consumers can buy fewer goods and services with the same amount of money they had before. This reduction in purchasing power is significant because it effectively diminishes the financial capabilities of individuals and households. As prices escalate faster than wages, consumers feel the impact as their money does not stretch as far, leading to a decrease in the overall standard of living for many.

In contrast, the other options illustrate situations that do not align with the reality of high inflation. Increased purchasing power is typically associated with deflation or stable prices, where money retains or gains value. Stability in price levels suggests a lack of inflation, which contradicts the concept of high inflation itself. More robust economic growth is often linked to controlled inflation rates rather than high inflation, which can lead to economic uncertainty and instability. Hence, the correct result of high inflation is indeed eroded purchasing power.