This thesis examines how inflation affects the consumer habits and choices of citizens. The aim of the paper is to investigate how the population perceives inflation, its effects on their financial situation and life choices, and to determine the primary challenges they face due to price escalation. Various methods will be used in the paper, including analysis and synthesis, inductive and deductive reasoning, description, comparison, compilation and empirical analysis of documents. Primary and secondary research methods are used during the research. After the economic crisis, Croatia and the member states of the European Union had low inflation rates, and in some years even negative figures were recorded. This low inflation, together with nominal interest rates, led to a liquidity squeeze that prevented recovery from the crisis by creating a reduction in real interest rates. The analysis showed that the biggest contributors to inflation in Croatia are the growth of food and soft drinks prices, as well as housing and transportation costs. In the eurozone, the most significant relative effect on overall inflation comes from fluctuations in energy prices. Although this contribution is growing in absolute terms, it remains consistent compared to other categories of goods and services. The results of the research in which the citizens of the Republic of Croatia participated, based on the expressed awareness of the respondents, indicate the harmful effects of inflation both on their personal circumstances and on the wider economy. Most of the participants perceive a rise in prices along with a decline in their purchasing power due to inflation. Additionally, many believe that inflation negatively affects the Croatian economy, forcing them to forgo certain purchases and change their lifestyle. It is crucial, however, to recognize that most respondents lack adequate knowledge of strategies to mitigate inflation, highlighting the need for increased education and communication about economic policies. There are also differing opinions on whether the effects of inflation are exclusively negative, which points to an opportunity for more extensive discussion and a deeper understanding of the intricate nature of inflationary dynamics. The results highlight the importance of economic stability and the urgent need for effective inflation management to preserve economic security and promote citizens' well-being.