Global inflation is a phenomenon that affects almost every aspect of the world economy. When inflation rises, the impact is felt across all sectors, from the price of goods to the country’s monetary policy. Amid a series of crises, such as the COVID-19 pandemic and geopolitical tensions, inflation has reached alarming levels in many countries. One of the main impacts of global inflation is the increase in the cost of living. The increase in prices of food, energy and consumer goods affects people’s purchasing power. Low-income households are often the most affected, because the proportion of their expenditure on basic needs is much higher. Significant price increases can cause anxiety and economic uncertainty, which in turn has the potential to increase global poverty rates. Inflation also affects the labor market. Many companies are dealing with surging costs by reducing their workforce or delaying hiring. As a result, unemployment rates may increase, creating a negative cycle for the economy. On the other hand, workers who still have jobs may demand higher pay increases to keep up with inflation, which could create pressure on companies and trigger more inflation. Additionally, global inflation is rocking financial markets. Central banks in various countries tend to raise interest rates in response to rising inflation. Rising interest rates increase borrowing costs, which impacts investments and consumer spending. In the stock market, investors often become more cautious, considering the impact of inflation on company profits. Developing countries are often more vulnerable to the impacts of global inflation. They have more limited bargaining power in controlling inflation and often depend on imports for basic needs. When the cost of imported goods soars, inflationary pressures may increase further. This situation can trigger political instability if people feel dissatisfied with government spending or economic policies. In the international trade sector, global inflation can change trade patterns. The increase in production and transportation costs has an impact on export and import prices, resulting in the trade balance of certain countries being affected. Fluctuations in currency exchange rates also often occur due to shifts in inflation and different monetary policies. The energy crisis, as seen in recent years, plays a major role in triggering inflation. Uncertainty in energy supply can cause spikes in oil and gas prices, which have a direct effect on transportation and production costs. High energy prices can also worsen inflation in countries that rely heavily on fossil energy. To tackle global inflation, international collaboration is becoming increasingly important. Countries need to establish integrated fiscal and monetary policies to maintain economic stability. Dialogue between developed and developing countries also needs to be increased to discuss joint solutions to this inflation challenge. Overall, global inflation is a complex challenge, has a broad impact on various economic sectors and requires a holistic approach in handling. People’s consumption patterns, company investment and government policies must be interconnected to build economic resilience amidst the existing uncertainty.