The impact of global inflation has broad and complex consequences for the world economy. Inflation is a condition when the prices of goods and services increase in general, reducing people’s purchasing power. When inflation occurs globally, its effects are felt in different countries in different ways. First, global inflation can cause an increase in the cost of living. Rising prices of basic necessities, such as food and energy, are eating into household incomes. With reduced purchasing power, consumers tend to reduce spending, which in turn results in a slowdown in economic growth. Countries with a high dependence on imports will experience a greater impact, as they will have to pay more for the same goods. Second, inflation has the potential to increase interest rates. Central banks in various countries often respond to inflation by raising interest rates to control inflation. Rising interest rates could slow investment, as higher borrowing costs make businesses reluctant to expand. This has the potential to hamper economic growth and slow job creation. Third, global inflation can widen social disparities. In a situation of high inflation, low-income groups should be the most affected. They spend a large portion of their income on basic needs, so that when the price of goods rises, the impact they feel is more significant than high-income groups, who are able to adapt to inflationary conditions. Fourth, inflation affects currency exchange rates. When a country experiences higher inflation than other countries, the value of its currency tends to decrease. This could cause instability in financial markets and disrupt international trade. Exports may increase while imports become more expensive, creating an imbalance in the trade balance. Fifth, inflation has an impact on financial markets, especially stocks and bonds. Uncertainty caused by inflation can cause investors to withdraw their funds from the stock market, resulting in a decline in share prices. On the other hand, bonds can be affected through increasing yields, as investors want higher returns to offset the risk of higher inflation. Furthermore, global inflation can also increase international cooperation. Countries need to collaborate to overcome challenges posed by inflation, such as surging energy prices. International forums such as the G20 and IMF can play an important role in formulating policies that support global economic stability. Lastly, changes in consumer behavior can occur due to inflation. With high prices, people may be more inclined to look for cheaper alternatives or consider reducing consumption of non-essential goods. This adaptation can create opportunities for innovative businesses to meet changing market needs. In dealing with global inflation, it is important for governments and financial institutions to develop effective strategies to minimize its impact. Prudent monetary policy, social protection programs, and support for important sectors must be considered to maintain economic stability. In this way, the impact of global inflation can be better managed for the welfare of people throughout the world.