Global inflation is a phenomenon of major concern throughout the world, disrupting the economic stability of various countries. Inflation occurs when the prices of goods and services increase, causing consumers’ purchasing power to decrease. In recent years, global inflation has been fueled by a variety of factors, including the COVID-19 pandemic, supply chain disruptions and surging energy prices. One of the main causes of global inflation is post-pandemic economic recovery. After drastic shutdowns in many countries, consumer demand soared. However, production has not fully recovered, causing an imbalance between supply and demand. For example, the increase in demand for electronic goods during the pandemic is not commensurate with the production capacity hampered by the lockdown. Supply chain problems also contribute greatly to inflation. Many industries depend on global networks for raw materials and components. When factors such as extreme weather, geopolitical conflicts, or logistics problems arise, production can come to a halt, which in turn increases costs. Rising oil and gas prices, influenced by conflicts in the Middle East and OPEC policies, also increase transportation and production costs. In many countries, central banks responded by increasing interest rates to control inflation. However, this step has its own consequences, namely reducing liquidity in the market and potentially slowing economic growth. A clear example is the move by the US Federal Reserve, which raised interest rates to contain a surge in inflation. However, this action could trigger a recession if inflation gets out of control. Global inflation not only has an impact on the macro economy, but also affects people’s daily lives. Families on fixed incomes appear to be hardest hit, as they have to spend more on basic needs such as food, housing and energy. Therefore, governments in many countries have launched aid programs to help their citizens overcome the impact of inflation. Certain sectors feel the impact of inflation more heavily than others. For example, the construction sector experienced a spike in material costs, thereby slowing down development projects. On the other hand, the electronics and technology sector is also feeling the pressure due to uncertainty in the supply chain and expensive components. Sustained global inflation also affects investment. Investors tend to look for safer assets such as gold or real estate to hedge against rising inflation. However, this action has the potential to create bubbles in certain markets, which are at risk of bursting when normal conditions return. Overall, global inflation is a complex challenge that requires multifaceted solutions from governments, central banks and businesses. Aligning monetary and fiscal policies, improving supply chain efficiency, and diversifying energy sources are necessary steps to address these challenges. With the right approach, the world can minimize the impact of inflation and return to a path of sustainable growth.