Why is global inflation still so high despite interest rate hikes?

Global inflation is still high because money is still moving fast, even though we’ve tried to slow it down.

Imagine you and your friends are playing a game with toy cars. You all start at the same time, zooming around the track. Then, someone hits the brakes, that’s like raising interest rates. It makes the cars go slower. But if most of you still keep going fast, the whole race stays exciting, inflation stays high.

Prices are still rising because things like food and energy have gotten more expensive. Think about your lunch, if apples and bread cost more, your lunch costs more too. That’s like when you need more coins to buy the same snack at the vending machine.

Even though interest rates went up, people are still borrowing money to buy houses or cars. It's like getting a bigger allowance so you can keep buying toys even when they get more expensive, money is still flowing, and that keeps prices going up.