High global inflation has a significant impact on financial markets around the world. Rising prices of goods and services in various countries not only affect consumer purchasing power, but also create uncertainty for investors and companies. One of the main effects of global inflation is shifts in interest rates by central banks. When inflation increases, central banks tend to increase interest rates to suppress the rate of inflation, which can reduce liquidity in financial markets. Rising interest rates cause borrowing costs to rise, which has a negative impact on companies that rely on debt to finance expansion. Additionally, investors may shift from stocks to safer assets such as government bonds, causing price fluctuations in the stock market. Investment strategies that typically produce profits in stable markets may not provide the same results in conditions of high inflation. Another impact is on currency exchange rates. High inflation in a country often causes a devaluation of that currency compared to other countries’ currencies. This may impact foreign investors, who may consider additional risks when investing in countries with high inflation. Currency devaluation also affects international trade, where imported goods become more expensive, resulting in larger trade deficits. In addition, global inflation often creates volatility in commodity markets, including oil and food prices. For example, rising oil prices can exacerbate inflation further, as the costs of transporting and producing goods increase. Investors in the energy and commodities sectors should consider the risks and opportunities arising from these imbalances. Institutional investors have also become more cautious, considering that inflation can cause a decline in the real value of their financial assets. Therefore, many are turning to protective assets such as gold or real estate, which are considered more resistant to inflation. This decision created a new dynamic in the capital market, where demand for physical assets increased. Companies that can educate themselves and adapt to these changes will have a competitive advantage. Innovation in products and services, as well as operational efficiency, is the key to surviving in an uncertain market. In addition, investors must remain vigilant and adapt to rapidly changing market conditions due to global inflation to minimize risks and maximize potential profits. Finally, monitoring economic indicators such as the consumer price index (CPI) and GDP growth is becoming increasingly important. This data helps investors and analysts formulate appropriate strategies to deal with the impact of inflation on financial markets. By continually updating approaches based on the latest information, both individuals and institutions can respond more effectively to global inflation challenges.