The fallout from the fight against inflation has accentuated vulnerabilities in the global economy. The increase in interest rates by central banks seeking to curb inflation is slowing global economic activity. At the same time the tightening financial conditions are likely to increase debt distress in emerging markets economies. Yet high inflation remains a challenge in the short run, especially among economies in the Middle East and North Africa (MENA) that have experienced currency depreciations. This report argues that even if the spike in inflation, particularly food-price inflation, turns out to be short-lived, it will still result in long-term development challenges that should, in principle, alter public policy priorities in the short- and long-term.