It’s not inflation that’s the problem, it’s interest rates (or swap rates). Raising interest rates are a great way to combat demand driven inflation (everyone

It’s not inflation that’s the problem, it’s interest rates (or swap rates). Raising interest rates are a great way to combat demand driven inflation (everyone borrows money to buy a set amount of goods/services so prices increase). It’s not a good way to deal with supply driven inflation in essential goods (say prices go up because a harvest fails). But it needs to happen to ensure the currency doesn’t fall relative to other currencies thus making imports more expensive.