The impact of global inflation on the economies of developing countries is an important issue that affects various aspects of life. Global inflation is often triggered by a number of factors such as increases in prices of basic goods, monetary policy in developed countries, and political uncertainty. One of the significant impacts of global inflation is the increase in import costs. Developing countries, which often depend on imports for critical goods such as energy and food, are experiencing price spikes that can put pressure on people’s purchasing power. This increase in costs causes higher domestic inflation, thereby worsening economic conditions. In addition, global inflation can increase the burden of foreign debt. Many developing countries owe their debts in foreign currency, so when the local currency exchange rate weakens due to inflation, the debt burden becomes heavier. This can lead to an increase in default risk and weaken investor confidence in the ability of developing countries to manage their economies. The industrial sector is also affected. Rising global raw material prices could disrupt supply chains and, ultimately, reduce production. Entrepreneurs may be forced to increase product prices, which can reduce competitiveness in domestic and international markets. The agricultural sector is also vulnerable to global inflation. High prices of fertilizer and agricultural raw materials have a direct impact on farmers’ production costs. Rising food prices trigger social dissatisfaction, which has the potential to lead to unrest and political instability. Government spending will also be affected. Developing countries often have to increase social spending to overcome the impact of inflation on their people. This move could be beneficial in the short term, but has the potential to lead to a larger budget deficit, which is less healthy for long-term economic growth. Although the impact of global inflation is complex, it is important to consider mitigation strategies. Developing countries need to strengthen domestic economic foundations, such as diversifying resources and increasing agricultural capacity. A more proactive trade policy is also needed to reduce dependence on imported goods. By understanding the impact of global inflation, developing countries can take steps to strengthen their economic resilience. Collaborative efforts with international financial institutions are key in finding sustainable solutions amidst global uncertainty. Every policy taken must be inclusive so that it can reach all levels of society, especially vulnerable groups who are most affected.
