Inflation is one of the most oldest phenomena in the economy that has great impact on production, costs, savings, investments, revenues, expenditures and budget. Given the fact that it affects a series of factors that shape economy, inflation is one of the fundamental problems in the economy, so it needs to be determined according to the criteria and classifications in order to be comparable and ultimately remedied. In today’s unpredictable and turbulent world, it is crucial to observe inflation and how external factors affect the same, whether it is an increase or decrease. The graduate thesis consists of six chapters. The first chapter is an introduction in which the research methods are described, but also the goals of the same and a brief description of inflation. The second chapter provides the theoretical framework of inflation, its types, and the influence of external shocks on inflation, including the consequences that inflation had on the European union. The third chapter describes the COVID-19 pandemic along with its impact on inflation and the consequences of the pandemic on the increase in inflation in the European union. The fourth chapter of this thesis describes the war in Ukraine. Also, in the fourth chapter it is described how the war affected and what are the consequences of the war on the inflation of the European union. The fifth chapter, which is also an empirical study, analyzed the impact of the COVID-19 pandemic and the war in Ukraine on inflation in the European union. There are two research hypotheses, namely: H0: There is a positive relationship between the impact of COVID-19 pandemic and the war in Ukraine on the war in Ukraine on the increase in inflation in the EU and H1: There is no positive impact of COVID-19 pandemic and the war in Ukraine on the increase in inflation in EU. The obtained results of the research confirm that the COVID-19 pandemic and the war in Ukraine affect the increase in inflation in the European union. To further confirm the HO hypothesis, a correlation analysis of the impact of the pandemic on inflation was conducted, as well as a correlation analysis of the impact of the war on inflation in the European union. Each correlation analyzes confirm the connection between the COVID-19 pandemic and the war in Ukraine on the inflation of the European union. In the final chapter, a conclusion was made based on the results of the conducted research and answers the questions raised in the paper.