I Need an Idiots Guide to The Cost of Living/Inflation/Interest Rate Rises We Are Currently Experiencing

I cannot get my head around this whole concept.

Shit has gone up in price because of war essentially cutting off crucial supplies of food and fuel.

This has created scarcity in some areas whereby the price rises and in turn, those goods up the chain go up in price to cover expenses.

As a result people have had to spend more money and the RBA doesn't like too much money being spent, so interest rates have gone up to curtail spending, limiting credit being handed out and providing more incentive to save money to earn interest.

Now that is my bog average understanding of it up to that point and it may even be nearly right.

Now in an isolated economy, in theory people spending less would drive down the price of goods and services and result in lowering of prices. But with the main driver of this inflation being overseas war, does an interest rate hike actually achieve anything by ways of lowering the price of goods and services?

It's this I can't really grasp. What are the tangible effects that an interest rate rise wants to achieve in our current scenario?

Is it a good thing for the economy? The whole point of stimulus in the past was to pump more money into the economy to prop up business, does keeping money in bank accounts benefit business? Will inflation stop people from buying higher end products and see businesses and brands go belly up? Will the government have to do something stupid like allow people to take out super because of public outcry about people struggling?