Global inflation is an economic phenomenon that is a serious challenge in the modern era. In this context, inflation is defined as a general and continuous increase in the prices of goods and services, which is often caused by various factors, both internal and external. In recent years, many countries have experienced significant spikes in inflation, fueled by many factors, including supply disruptions, political instability, and expansionary monetary policy. One of the causes of current global inflation is the impact of the COVID-19 pandemic. This health crisis is causing major disruptions in global supply chains, resulting in shortages of goods and rising production costs. As demand increases due to economic recovery, the imbalance between supply and demand drives prices up rapidly. Rising energy prices, especially oil and gas, also contribute significantly to global inflation. Geopolitical uncertainty, such as tensions between energy producing countries, causes extreme price fluctuations. Countries dependent on energy imports feel the greatest impact, where the cost of living increases and can lead to social dissatisfaction. Tight monetary policy or extreme easing also affects inflation. Many central banks, in an effort to support post-pandemic growth, are implementing low interest rate policies and asset purchase programs. Although the aim of these policies is to stimulate the economy, the long-term results could lead to higher inflation if consumer spending is not matched by better productivity. In an international context, inflation is also influenced by currency exchange rates. Turmoil in foreign exchange markets can change the costs of imports and exports, affecting the purchasing power of consumers in various countries. A weak currency makes imports more expensive, which contributes to inflation. The food sector is one of the areas most vulnerable to inflation. Global food prices have increased significantly, caused by climate change, regional conflicts and restrictive trade policies. Farmers and producers face rising production costs, and in many cases, they are forced to pass these costs on to consumers. The implications of global inflation are far-reaching. Not only does it affect people’s purchasing power, but it can also trigger government economic action. Countries may need to consider strict fiscal policies or intervene to stabilize prices. The business sector also has to adapt quickly, thinking about strategies to manage costs and maintain profitability. Amid these challenges, it is important for individuals and businesses to monitor inflation trends and take anticipatory steps. Investment diversification and careful budget management can help reduce the impact of inflation. In the long term, innovation and increasing productivity will be the key to overcoming the challenge of inflation, thereby creating a more resilient economy in this modern era.
