Economics, who really understands it!

Listening to economists and the President of the Reserve Bank I'm even more confused about how economics work, especially when we hear that inflation is high and that the interest rates have to be adjusted upwards.
My understanding, and I have to admit I'm not an accountant or economist,  is that inflation is a result of business inflating prices in order to gain a bigger margin. In layman's terms, they project there expenditure on future trends and adjust pricing accordingly, however their crystal balls may sometimes have cracks or smudges   on it and they project higher expenditure than it actually  is and the difference is inflation.
Now in this scenario the consumer, for those who don't know, its you and me, bears the brunt of this little miss-calculation!
So in order to still have a braai on weekends and to take the children to a movie instead of having them in the street and writing obscenities on the neighbours walls, we go into debt, thus spending more than we earn.
Now in order to stop you from braaiing, having a beer, taking the kids to the movies or just eating with the electric light on, the clever people at the Reserve Bank decides to hike interest rates, and who suffers, yes, you have it, the consumer again!
Out comes the crystal ball again and the whole process starts all over again!
Well I'm off to go and buy some beer and meat, no coldrinks its too expensive.