The impact of global inflation on economic growth can be seen from various aspects, from people’s purchasing power to foreign investment. High inflation, especially if it occurs in key countries, can trigger a domino effect throughout the world. When the prices of goods and services increase, consumer purchasing power tends to decrease. This has an impact on household expenditure which is an important component in GDP growth. In the industrial sector, global inflation affects production costs. Rising prices for raw materials and labor can limit companies’ profits, forcing them to raise the prices of their products. This move makes goods less competitive on the international market. If companies are unable to absorb these costs or pass them on to consumers, they may be forced to reduce production, which in turn could result in layoffs and unemployment. From an investment perspective, high inflation creates economic uncertainty. Investors tend to avoid markets that are considered volatile. In the long term, this could result in reduced investment in infrastructure, research and development. Lack of investment impacts innovation and efficiency, which are essential for sustainable economic growth. Additionally, inflation volatility can attract the attention of foreign investors, who prefer more stable markets, thereby reducing foreign direct investment (FDI) flows. Interest rates are also a variable that is affected by global inflation. Central banks in various countries may be encouraged to raise interest rates to tackle inflation, which in turn could increase borrowing costs. This increase in interest rates will burden the housing, consumption and business investment sectors. Financing becomes more expensive, so public consumption and company capital expenditure decrease. From the government’s perspective, rising inflation can reduce the effectiveness of fiscal policy. Efforts to stimulate the economy through increased spending may be hampered by rising costs of goods and services. Moreover, the government may be forced to raise taxes to offset the deficit caused by inflation. Developing countries are usually more vulnerable to the impact of global inflation. They often have a high reliance on imports of goods and services, which can become more expensive in periods of inflation. This not only affects domestic inflation, but can also increase social and political instability, resulting from increasing public dissatisfaction regarding the rising cost of living. Meanwhile, some sectors may benefit from inflation, such as energy commodities and raw materials. When the prices of these goods increase, companies in the sector can experience a spike in revenue. This creates a wider imbalance in the economy, where some sectors thrive while others struggle to survive. In a global context, international cooperation becomes crucial. Countries need to work together to mitigate the effects of inflation by implementing fair trade policies and support for financial stability. Policy alignment between major countries can help reduce the negative impact of price fluctuations and maintain sustainable economic growth at the global level.