Global inflation has a significant impact on the economies of developing countries. In this context, inflation in developed countries can trigger variations in the prices of goods and services in international markets. As a result, developing countries, which depend on commodity and product exports, felt the direct impact. One of the main impacts of global inflation is an increase in import costs. Developing countries usually import essential goods, including energy and food. This increase in prices not only impacts the trade balance but also erodes people’s purchasing power. Price instability can cause domestic inflation to increase, which worsens economic conditions. In addition, global inflation can affect the currency exchange rates of developing countries. Rising interest rates in developed countries in response to inflation often lead to capital outflows from emerging markets. This could lead to depreciation of the local currency, worsening import costs and adding to domestic inflationary pressures. Developing countries are also vulnerable to debt crises due to global inflation. When debt costs increase due to higher interest rates in developed countries, governments in developing countries often have difficulty paying debt installments, resulting in larger budget deficits. This could result in cuts to public spending, with direct impacts on health services, education and infrastructure. Global inflation also affects foreign direct investment (FDI). Economic uncertainty and the potential for recession in developed countries can make investors reluctant to invest in developing countries. As a result, infrastructure projects and long-term investment are hampered, which impacts economic growth. Agriculture is a sector that is greatly affected by global inflation. An increase in the price of fertilizer and production raw materials has the potential to reduce agricultural yields. Increasingly expensive agricultural commodities can interfere with food systems, increase food insecurity, and widen social disparities in developing countries. Not only that, global inflation often encourages protectionist policies. Developing countries may try to protect domestic industries by increasing import tariffs. While these measures may help in the short term, in the long term they can worsen international trade relations and reduce competitiveness. Governments in developing countries need to adopt proactive monetary and fiscal policies to address the impact of global inflation. Strategies such as strengthening foreign exchange reserves, developing the domestic sector and diversifying the economy are very important. That way, developing countries can adapt to global inflation fluctuations and reduce their negative impact on economic growth. Through a comprehensive and sustainable approach, these countries can build better economic resilience to the volatility generated by global inflation.
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