In this final paper, an analysis of the impact of inflation on the capital market of the Republic of Croatia will be conducted. The first section will present the macroeconomic state of the Republic of Croatia, highlighting the main indicators that assist in determining the macroeconomic condition of a given country, with special emphasis on inflation. Furthermore, the inflation rate in the Republic of Croatia will be compared with that of the European Union, and the responses of central banks in their efforts to curb inflation will be examined. In the second section, the capital market will be defined, including its financial instruments and participants, and the organizational structure of the Zagreb Stock Exchange will be presented. The third section will explore how inflation affects stock price dynamics on the Croatian stock exchange, as awell as the liquidity and indices of the ZSE. The results will be compared with some of the leading stock exchanges in the world. The final section of the paper will address the impact of inflation on bonds in the Republic of Croatia. The analysis will focus on how changes in inflation affect bond yields and the overall attractiveness of debt as an investment option. The goal of this paper is to provide a comprehensive overview and analysis of the impact of inflation on the capital market, with parallels drawn to the global environment.