Global inflation is a phenomenon that can affect the world economy at large. The increase in prices of goods and services was triggered by various factors, including increasing production costs, supply chain disruptions, and expansive monetary policy. The impact of inflation is not only felt in countries experiencing price spikes but also spreads throughout the world through trade and investment. One of the main impacts of global inflation is the increase in the cost of living. Families in many countries have difficulty meeting basic needs such as food, housing and energy. For example, food prices experience sharp spikes, especially during periods of geopolitical tensions that disrupt supplies. This results in social and political instability in various regions which can trigger protests and riots. The business sector also felt a significant impact due to inflation. Rising production costs force companies to adjust the selling prices of their products. Although they may seem profitable in the short term, price adjustments can reduce consumers’ purchasing power, leading to a decrease in demand. If demand falls, companies may be forced to cut workforces, which could increase unemployment rates and add to social stress. Changes in interest rates are a common response to inflation. Central banks in various countries may raise interest rates to control inflation. This increase in interest rates, although necessary to stabilize prices, can slow economic growth. More expensive financing makes investment more difficult for small and medium-sized businesses, which are the backbone of many economies. Global inflation also affects currency exchange rates. Countries with high inflation often see a decline in the value of their currency relative to more stable currencies. This could worsen the economic situation by increasing import costs and slowing overall economic growth. When this happens, countries that depend on imports for goods and services will face greater challenges in maintaining economic stability. In addition, global inflation can affect foreign investment flows. Investors tend to be more cautious in high inflation environments, turning to safer assets to protect their capital. This could lead to a decline in investment in countries that most need economic faj support. In the long term, a lack of investment can slow innovation and growth, creating a negative cycle that is difficult to recover from. Over time, the impact of global inflation has had a broad impact on the economy, sector transformation, and uncertainty in financial markets. Sustained global economic growth requires international collaboration to address the fundamental causes of inflation. Cooperation between the government, central bank and the private sector is important in creating policies that can mitigate the negative impact of inflation on the world economy.