Global inflation is a condition that can affect various aspects of the economy in a country, including the domestic economy. The impact can be felt through several channels, including prices of goods and services, people’s purchasing power, investment, and currency exchange rates. One of the main impacts of global inflation is an increase in the prices of goods and services. Rising raw material and energy prices in international markets will have a direct impact on production costs for local businesses. When companies face rising costs, they tend to increase the prices of their products. This creates higher domestic inflation, which in turn reduces people’s purchasing power. Consumers will spend more money on the same goods, thereby reducing their ability to purchase other goods and services. People’s purchasing power is closely related to inflation. When prices of goods and services increase faster than wages, consumers will have lower real incomes. This can lead to a decline in consumption, which is an important component of economic growth. With reduced consumption, businesses will experience reduced revenues, which could lead to job cuts. Investment is also influenced by global inflation. When inflation rises, economic uncertainty increases, and investors tend to be risk averse. This can hamper the growth of domestic investment. Additionally, interest rates may increase in response to inflation. Rising borrowing costs will make it more difficult for companies to finance expansion or innovation. The impact of global inflation can also be felt on currency exchange rates. When domestic inflation is higher than inflation in other countries, the value of the domestic currency can fall. A decline in the exchange rate will exacerbate the problem of inflation, because imported goods will become more expensive. This creates a cycle of inflation that tends to make the population even more depressed. Governments and central banks often attempt to respond to global inflation with monetary policy. Increasing interest rates could be one way to control inflation. However, this step could also have side effects, such as slowing economic growth. Additionally, if action is taken too slowly, inflation could become systemic, making intervention more difficult and more expensive. In a global context, the impact of inflation can also affect international trade. Countries with high inflation can lose competitiveness, because their products become more expensive than products from other countries. This could result in a decrease in exports and create a trade deficit. Therefore, it is important for the country to maintain price stability in order to maintain a healthy trade balance. It is important for the government and policy makers to monitor global inflation conditions and take anticipatory steps. Strengthening the domestic economic structure through innovation, industrial diversification and increasing productivity could be the key to reducing the impact of global inflation. Apart from that, economic literacy for the community is also important to prepare them to face the challenges posed by changes in the global market. Overall, global inflation has a complex impact on the domestic economy. Understanding and addressing these factors is important to ensure sustainable economic growth and societal well-being.