Global inflation is a phenomenon that has a significant impact on the world economy. When prices of goods and services increase generally, consumer purchasing power decreases, causing changes in consumption patterns. Inflation can be caused by a variety of factors, including excess demand, rising production costs, and loose monetary policy. One of the most direct impacts of global inflation is a reduction in people’s purchasing power. When prices rise, people will shift towards cheaper goods, which can affect overall market demand. This creates pressure on certain sectors, especially for small businesses that do not have the flexibility to raise prices without losing customers. Inflation also influences monetary policy implemented by central banks. To control inflation, central banks often increase interest rates. Increasing interest rates can slow economic growth because borrowing costs become higher. In a global context, changes in interest rates in one country can affect international capital flows and currency exchange rates, creating uncertainty in global markets. Foreign investment is also affected by global inflation. When inflation rises, investors tend to look for more stable places to invest their capital. This can lead to reduced investment in countries with high inflation rates, slowing long-term economic growth. The banking sector faces challenges because inflation can lead to increased credit risk. When the cost of living increases, the possibility of loan arrears by debtors also increases. This can lead to losses for banks and instability of the financial system. Apart from that, global inflation has the potential to create social injustice. Low-income groups feel the impact of inflation the most, as a greater proportion of their income is spent on basic needs, such as food and housing. Their inability to adapt to rising prices can widen economic disparities in society. The impact of global inflation is also visible on international trade. When one country experiences high inflation, the price of exports from that country increases, which can reduce international competitiveness. At the same time, countries that import goods from countries with high inflation may experience a spike in costs, which could hurt domestic consumers and businesses. In a global context, inflation knows no boundaries. With globalization, the influence of national inflation can spread to other countries through supply chains and various trade channels. For example, if production costs increase in a large country like China, the effects could be felt throughout the world, as many countries depend on those products. Another factor contributing to global inflation is changes in fiscal and monetary policies triggered by political instability or health crises, such as the COVID-19 pandemic. Massive fiscal stimulus in various countries to encourage economic recovery added to inflationary pressures, while supply chain disruptions made the situation worse. With a deep understanding of the impact of global inflation on the world economy, policymakers and economists need to develop effective strategies to overcome this challenge. Appropriate and responsive policies will help balance economic growth with price stability, so that society can survive amidst ongoing inflationary turmoil.