Global inflation has become a major issue that has an impact on economic stability throughout the world. Changes in the prices of goods and services have significantly affected people’s purchasing power, triggered market uncertainty, and increased pressure on countries’ monetary policies. Although inflation is natural in an economy, uncontrolled spikes can cause huge losses. One of the main factors influencing global inflation is increasing production costs. The COVID-19 pandemic has disrupted supply chains, causing shortages of raw materials and critical components. As demand continues to increase while supply is hampered, prices begin to soar. Additionally, geopolitical tensions and conflicts—as seen in Ukraine—add to instability by disrupting energy and food supplies, contributing to inflation in many countries. Central banks in various countries have tried to respond to inflation by raising interest rates. However, this increase in interest rates could hamper economic growth by limiting access to credit, which is important for investment and consumption. Many companies face a difficult choice between increasing prices to maintain profit margins or maintaining prices and sacrificing profitability. This creates a dilemma that can worsen the inflation situation. Apart from supply factors and interest rate policies, inflation is also controlled by people’s inflation expectations. When individuals and businesses expect higher inflation, they tend to take steps to protect themselves, such as raising prices or demanding higher wages. However, these expectations can create a vicious circle, where inflation continues to accelerate because behavior matches expectations. Global inflation has a heavy impact on developing countries. With limited resources and dependence on imports, these countries are more vulnerable to global price spikes. For example, oil importing countries experience heavy burdens when energy prices increase. This could widen economic disparities, spark social protests, and exacerbate political instability. To overcome the threat of global inflation, international collaboration is very important. Countries need to work together to strengthen supply chains and address common challenges in price stability. Joint initiatives in terms of fiscal and monetary policy can help achieve the inflation target and support sustainable growth. With all the challenges faced, it remains important for every country to develop strategies that are adaptive and responsive to changing global economic conditions. Governments and central banks must be prepared to respond quickly, both in the face of rising inflation and when the economic situation becomes more stable. Success in managing global inflation will depend heavily on clear communication with the public and transparent steps in making economic decisions.