Inflation has mostly gone up because of higher global commodity prices, global supply chain bottlenecks, rising food and energy prices, falling currencies at the start of the pandemic, and bad climate shocks. Quantitative easing, which is a big financial stimulus plan that has been rolled out over the last two years, has also made prices go up for consumers. Prices are going up at the fastest rate in almost 40 years, and tight labour markets in some of the world's most important economies have also started to push up wages. Inflation has gone up in the second half of 2021 because of a number of factors that have different effects in different places. More than half of the record inflation rate in the Euro area in January was caused by rising energy prices, and that was before the situation in Ukraine got worse. Most leaders in the west have strongly condemned Russia's invasion on February 24 and have already started to put Russia under harsh economic and political sanctions. Already, the pandemic has caused the world economy to have high inflation and financial markets that are weak and volatile. Russia is one of the EU's biggest sources of oil and gas, and putting sanctions on Russia will affect how much energy the rest of Europe can get. Russia supplies Europe with almost 40% of its natural gas and 25% of its oil. As part of sanctions against Russia, if the gas line from Russia to the EU is turned off, this will hurt the EU economy and could cut the EU's GDP by 3%. Global food prices are at their highest level in a decade, and Russia and Ukraine export almost a quarter of the world's wheat. This could have an effect on global food prices as well. Even if a new type of Coronavirus didn't show up to mess up growth around the world, the Ukrainian crisis would still slow growth and cause big jumps in inflation. The outlook for an economic recovery around the world will be lowered [1].