THE IMPACT OF INFLATION ON THE ECONOMY AND WAYS TO REDUCE IT

This article examines the impact of inflation on the national economy and analyzes modern economic
approaches to controlling it. The inflation rate has a direct influence on macroeconomic stability in many countries, including
developing economies. According to the International Monetary Fund (IMF) and the World Bank, global inflationary pressure
during 2023–2025 was mainly associated with fluctuations in energy prices, disruptions in supply chains, and the expansion
of monetary policy.
The study analyzes the effects of inflation on the Consumer Price Index (CPI), real household incomes, the investment
climate, and exchange rates. In addition, the dynamics of inflation and the monetary policy instruments of the Central Bank
under the conditions of Uzbekistan were examined. The findings indicate that rising inflation reduces the purchasing power
of the population, increases economic uncertainty, and negatively affects investment activity. The article proposes effective
methods for reducing inflation based on monetary, fiscal, and structural reforms