Most people do not understand "Inflation." They seem to think Inflation is the rise in the cost of goods and services  That is actually the technical definition of inflation.  It's usually caused by an increase in the money supply, but not always.  Whether or not that is the reason, it still has the same effects on the economy, including causing interest rates to rise; and when it is caused by an increase in the money supply and monetary policy keeps expanding that, well...