Inflation is a continuous increase in the level of prices of goods and services in the economy during a certain period. It reduces the value of money over time and thus affects the entire economy, as well as the individual. According to the intensity, we divide it into mild, moderate, strong (galloping) and hyperinflation. According to the duration, it is divided into secular or transitory, one-time and chronic. According to the initial causes, it is divided into demand inflation and supply inflation. One of the main indicators of inflation is the consumer price index and the harmonized consumer price index. The opposite of inflation is deflation. Deflation represents a general decline in prices. Inflation has a great impact on economic growth and the standard of living of citizens. It negatively affects the economy and reduces investments. Inflation can be fought by curbing demand inflation or curbing cost inflation. Suppression of demand inflation is carried out by restrictive monetary policies, i.e. by reducing the money supply, and by fiscal policies, i.e. by increasing tax rates. By suppressing cost inflation, the state uses various measures that affect the control of wage growth, which is considered one of the main factors of inflation. Croatia had the highest inflation at the time of the Homeland War, in the 90s of the last century. The protective mechanism of companies, but also of households, was savings and price indexation in foreign currencies. The currency used was the German mark (DEM). The most famous case of inflation is the hyperinflation in the Weimar Republic, which began in 1923. Croatia is currently struggling with inflation that occurred after the COVID-19 pandemic, in the last 3 years, and still has one of the highest inflation rates in the EU. The government introduced measures to moderate the rise in energy prices, limit the prices of some products, and support and incentives. The impact of the introduction of the euro (2023) on inflation is still being investigated.