I don’t really get all the details, but it seems like prices can keep rising even if rates go up because people are still buying stuff anyway. If demand doesn’t cool off, inflation just keeps going.

Higher rates are supposed to slow things down, but sometimes they don’t hit right away. Companies might keep raising prices because their own costs are still climbing, so inflation doesn’t drop instantly.

Inflation can stay high if the main drivers aren’t interest‑rate sensitive. Like if prices are rising because of supply issues or energy shocks, raising rates won’t fix that. It just takes time for the policy to bite.

Monetary tightening works with a lag, and markets know it. If supply chains are tight, wages are sticky, or fiscal policy is still pumping money into the system, inflation can keep running even as the central bank hikes. Rates alone can’t offset every macro force.

Inflation persists when its sources lie outside the demand channel: supply constraints, commodity shocks, structural labor shortages, or aggressive fiscal spending. Even with higher policy rates, expectations may remain elevated, and firms continue to pass through costs. Until those underlying pressures ease, tighter monetary policy won’t immediately translate into slower price growth.