The Impact of Global Inflation on the Southeast Asian Economy Rising global inflation has a significant impact on the Southeast Asian economy. Countries in the region are facing severe challenges caused by surging commodity prices, supply chain disruptions and tight monetary policies. This impact varies greatly between countries, depending on their economic structure and dependence on imported goods. One of the direct effects of global inflation is an increase in the prices of goods and services. Countries such as Indonesia and the Philippines, which rely heavily on imports of raw materials and energy, feel the impact more heavily. Rising oil and natural gas prices affect the costs of transporting and producing goods, which in turn drives domestic inflation. Apart from that, soaring food prices put pressure on people’s purchasing power, especially among low-income groups. This condition requires the government to take proactive steps. For example, Vietnam has increased national food stocks to stabilize prices, while Malaysia has implemented energy subsidies for less fortunate residents. Monetary policy also tightened; Bank Indonesia and Bank Negara Malaysia have raised interest rates to control inflation, although this move could restrain economic growth. The impact of global inflation is also visible on foreign investment. Economic uncertainty due to inflation and rising borrowing costs can reduce foreign direct investment (FDI) flows. Investors tend to shift their attention to more stable markets, leaving behind countries less able to manage inflation. This could slow down the development of infrastructure and important projects in Southeast Asia. The export sector is also affected. Countries like Thailand that rely on exports of automotive and electronic products face competitive challenges. If production costs rise, they have to choose between lowering profit margins or increasing product prices. This effect can reduce competitiveness in global markets, especially if competing countries can produce goods at lower costs. Global inflation shocks also influence social policy. In creating stability, some governments may focus on subsidies to maintain people’s purchasing power. However, the allocation of these funds is often limited, which has an impact on education and health financing. On the other hand, the sustainability of this policy is a challenge when the state budget is increasingly pressured by debt. The inflation crisis and global recession have also pushed back to issues around economic sustainability. Countries in Southeast Asia are required to increase food and energy security through investment in sustainable agriculture and renewable energy sources. Through innovative policies and investment support, countries in the region can create a more resilient ecosystem. The role of digital technology is also increasingly important in dealing with the impact of inflation. By driving innovation and efficiency, startups and technology companies can help businesses reduce operational costs and reach new markets. Increased digitalization could also lead to greater price transparency, reducing the risk of further inflation. In this context, regional collaboration becomes increasingly important. ASEAN countries can share experiences and technical assistance to overcome the impact of inflation. Cooperation in the fields of trade, investment and economic policy can strengthen regional resilience against uncertain global economic developments. Based on existing conditions, macroeconomic conditions in Southeast Asia are strongly influenced by the dynamics of global inflation. A rapid and coordinated response will be key for countries in the region to meet these challenges and ensure sustainable growth in the future.