The concept of inference is foundational to the study of pragmatics, however, the way it is theoretically conceptualised and methodologically operationalised is far from uniform. This Element investigates the role that inference plays in pragmatic models of communication, bringing together a range of scholarship that characterises inference in different ways for different purposes. It addresses the nature of 'faulty inferences', promoting the study of misunderstandings as crucial for understanding inferential processes, and looking at sociopragmatic issues such as the role of commitment, accountability and deniability of inferences in interpersonal communication. This Element highlights that the question of where the locus of meaning lies is not only relevant to pragmatic theory but is also of paramount importance for understanding and managing real-life interpersonal communication conflict.