GLOBAL INFLATION AND SUPPLY CHAIN VULNERABILITIES: NAVIGATING ECONOMIC INSTABILITY IN AN ERA OF EXTERNAL SHOCKS

Abstract

The global economy has recently witnessed a resurgence of high and persistent inflation, a phenomenon profoundly exacerbated by systemic vulnerabilities within international supply chains and the increasing frequency of external shocks. This article analyzes the interconnected dynamics of elevated inflation and fragile supply networks, identifying how pandemics, geopolitical conflicts, and climate-related disruptions have acted as catalysts. It explores the dual nature of contemporary inflation, driven by both demand-side pressures and critical supply-side constraints. Drawing on recent economic data and policy responses, the paper proposes a series of integrated solutions, emphasizing the necessity of adaptive monetary and fiscal policies, strategic supply chain restructuring, and enhanced international cooperation to build greater economic resilience and foster long-term price stability in an unpredictable global environment.