Economic growth is one of the most crucial objectives of any country and government. This paper will focus on the effect of inflation on economic growth while examining how this relationship differs between developing and developed countries. The relationship between these two variables has been open to question, and there has not been a clear answer. At first, this paper is going to investigate the difference in the relationship between inflation and economic growth and is followed by a quadratic function to address the turning point or a so-called threshold where inflation starts to hurt growth. The study uses panel data from 108 countries in the period 1970 to 2023. The results show a different relationship betweendeveloped and developing countries, while the latter is affected more negatively by higher inflation rates. The quadratic function indicated a similar result, where the threshold is higher for developed countries, meaning that the negative effect of inflation on GDP growth fordeveloping countries starts at a lower inflation rate than for developed countries.