The Impact of Global Inflation on Economic Growth Global inflation plays an important role in influencing economic growth in various countries. When the inflation rate increases significantly, several economic sectors will feel the impact, both positive and negative. The increase in prices of goods and services reduces people’s purchasing power, thereby affecting the level of domestic consumption. One of the negative impacts of global inflation is economic uncertainty. With unstable prices, investors tend to be more careful in making investment decisions. This uncertainty can hamper the flow of foreign direct investment (FDI) which can support economic growth. When investors reduce their investment, companies will find it difficult to expand and create new jobs. On the other hand, moderate inflation can create economic stimulus if accompanied by income growth. An increase in people’s income can contribute to increased consumption, which in turn drives economic growth. However, if inflation develops into hyperinflation, the impact is very detrimental. High price increases cause people’s savings to erode, reduce consumption, and cause a recession. The international trade sector is also influenced by global inflation. Countries with high inflation will experience a decline in export competitiveness, because their goods become more expensive than goods from other countries. This can lead to a decrease in the trade surplus or even a deficit, which in turn has a negative impact on economic growth. Global inflation also encourages central banks to increase interest rates to control inflation. Rising interest rates can result in increased borrowing costs, which limits investment and consumption. As a result, economic growth could be further hampered. This time, the impact is more profound for the MSME sector which is highly dependent on external financing. Apart from that, the impact of inflation on commodity prices is also very significant. Increases in the prices of raw materials such as oil, metal ores, and agriculture can tend to increase production costs. Companies that are unable to transfer these costs to consumers through higher selling prices will experience reduced profit margins, ultimately resulting in reduced investment in innovation and product development. The government also needs to respond to global inflation by implementing appropriate fiscal policies. Focused state spending on productive sectors, such as infrastructure and education, can strengthen long-term competitiveness even in an inflationary situation. Regulating subsidies and controlling prices of basic goods can also be a solution to support people’s purchasing power. The country’s ability to overcome the impact of global inflation also depends on political stability and credible monetary policy. Renewable energy and economic diversification are key in reducing dependence on commodities affected by inflation. The quality of education and improving workforce skills are also priorities to ensure sustainable economic growth amidst global inflationary turmoil. Investments in technology and innovation will help the industrial sector to increase efficiency. Innovation in production processes and effective supply chain management can reduce the impact of inflation, because companies will be able to produce at lower costs. The use of information and communication technology can also support more efficient distribution. Overall, the impact of global inflation on economic growth is multi-dimensional. Despite the challenges and risks faced, through effective policies and innovation, countries can minimize the negative impacts of inflation and harness the potential for economic growth.