Analysis of the impact of inflation on global markets covers various interconnected economic dimensions. Inflation, as measured by increases in the prices of goods and services, affects consumer purchasing power and investment decisions. As inflation rises, consumers tend to reduce their spending, which can affect the earnings of companies in various sectors. First, inflation has the potential to cause interest rates to rise. Central banks, such as the Federal Reserve in the United States, may increase interest rates to control inflation. This increase in interest rates could have a negative impact on the property and stock sectors, because borrowing costs increase. Investors began to shift from high-risk assets to safer assets, slowing global economic growth. Second, inflation affects currency exchange rates. Countries with higher inflation tend to experience exchange rate depreciation. This happens because the attractiveness of investment in the country decreases. As the value of the currency decreases, the cost of importing goods increases, fueling further inflation. This impact is especially visible in developing countries that rely heavily on imports for goods and raw materials. Third, inflation has a direct impact on commodities. Increases in energy and raw material prices, such as oil and metals, can occur due to inflation expectations. Commodity-producing countries may experience short-term benefits in the form of higher incomes, but consuming countries will feel an extra burden on the cost side. The decline in consumer purchasing power in developed countries also reduces demand for commodities, creating uncertainty in global markets. Fourth, the impact of inflation is also visible in the supply chain. Price uncertainty can disrupt the production process, which may force the price of the final product to increase. Especially in the post-pandemic era, many companies are still struggling to restore supply chain circulation, so inflation causes more challenges in maintaining smooth operations. Furthermore, inflation affects government fiscal policy. In the face of high inflation, the government may be forced to increase subsidies for essential goods, thereby increasing the budget deficit. This can influence global investors’ perceptions of economic stability and influence foreign investment flows. Additionally, inflation can increase uncertainty in the stock market. Investors tend to avoid shares in companies that have uncertain profit potential due to rising operational costs. Sectors that are particularly sensitive to inflation, such as hospitality, travel and consumer, often experience significant declines in market value. Sixth, international relations are also affected. Countries with high inflation may seek to improve their trade balance by increasing import tariffs, which could trigger a trade war. This creates uncertainty in global markets and can affect world economic growth. Inflation movements also trigger volatility in global financial markets. Investors who are unsure about the future of inflation may adjust their portfolios, causing greater fluctuations in stock and bond markets. Therefore, understanding the impact of inflation on global markets is very important for policymakers and investors. Overall, the effects of global inflation are complex and interconnected. A deep understanding of these dynamics is key for market players to anticipate future economic movements. Thus, analysis of the impact of inflation is more than just calculating numbers, but covers all aspects of global economic interactions.