The paper, typically published twice a year, is Chapter 2 of the World Economic Outlook, titled The Great Tightening: Insights from the Recent Inflation Episode. While the exact years covered are not specified, the document examines the three years following the pandemic.

- Price Spikes and Sectoral Impact: Inflation has been marked by sharp price increases in specific sectors, particularly goods and industries reliant on energy and flexible pricing. These pressures have intensified over time.

- Core Inflation Dynamics: Higher energy prices and sectoral spillovers have significantly influenced core inflation levels.

- Unemployment and Inflation: Inflation has accelerated as unemployment rates have declined, aligning with the economic theory that lower unemployment boosts demand, leading to higher prices.

- Wage Stagnation: Wages have remained stagnant despite rising prices, worsening consumers' purchasing power.

- Supply Chain Constraints: Early in the pandemic, reduced capacity in durable goods and transportation sectors exacerbated inflation. These supply chain bottlenecks remain a key challenge for policymakers.

- Global Policy Implications: The report argues that global policy coordination is more effective than individual country responses as it can help reduce commodity prices.

In related news, Egypt's annual headline inflation increased to 26 percent in September, up from 25.6 percent in August, with monthly inflation rising to 2.3 percent compared to 1.9 percent the previous month, according to the Central Agency for Public Mobilization and Statistics (CAPMAS). In contrast, core inflation edged slightly, falling from 25.1 percent in August to 25 percent in September, as the Central Bank of Egypt (CBE) reported.

Egypt remains committed to reducing inflation in line with the $8 billion IMF Extended Fund Facility (EFF) program. As global inflationary pressures persist, Egypt's adherence to IMF guidelines is vital for stabilizing its economy.