The inflation is increasing almost worldwide and there is a universal attempt to increase lending interest rates. The idea is that the inflation is increasing because demands are increasing and if the lending rates are higher people would take less loan and the demand would decrease.
However, inflation also increases when demand is less. If demand is less, the selling price is intentionally increased to maintain profits. It is simple economy of scale effect.
So, the question is in the current situation is inflation increasing because there is excess demand or inflation is increasing because there is reduced demand.
In my view, inflation is increasing because there is reduced demand. In such a case if lending rates are increased, the demand would become even lower. It is a recipe to bring economic recession.