This thesis analyzes inflation and its impact on the economy of the European Union (EU). Inflation, defined as the general increase in prices of goods and services over time, is a key macroeconomic indicator that significantly affects economic activities, stability, and growth. The thesis focuses on various types of inflation, including demand-pull inflation, cost-push inflation, and imported inflation, and their specific effects on the EU economy. The thesis examines the history of inflation in the EU, including the successes and challenges of the European Central Bank's (ECB) policies in maintaining price stability. One of the key sections of the thesis investigates the mechanisms for combating inflation. It analyzes the monetary and fiscal policies implemented by the ECB and national governments and evaluates their effectiveness in the context of current economic challenges. This thesis provides a comprehensive overview of the complex relationships between inflation and economic growth in the EU and highlights the importance of coordinated economic policies in addressing the challenges posed by inflation. The study contributes to a better understanding of how inflation shapes economic conditions and provides a foundation for future research and policy aimed at maintaining economic stability in the EU.