Why is global inflation still high despite rising interest rates?

Global inflation is still high because people and businesses keep spending even when prices are rising.

Imagine you have a piggy bank full of money, and every time you want to buy something, the price goes up, like your favorite candy costs more each week. But instead of saving your money, you keep buying that candy anyway. That's what’s happening around the world.

Rising interest rates are like adding more kids to a playground. When there are more kids, it gets noisier and harder for everyone to play comfortably, just like how higher interest rates make borrowing money more expensive. But even with more noise (or higher prices), the kids still want to play (people still want to spend). So, even though things cost more, people keep buying them because they don’t have a choice or don't want to wait for things to get cheaper.

Even if your piggy bank is getting lighter each week, it’s not empty yet. People and businesses still have enough money to spend, like having a big lunch even when you know you’ll be hungry later. That’s why prices keep going up, even with higher interest rates, the game isn’t over yet!