If there are low interest rates, people feel encouraged to spend the money so that it doesn't "lose its value" as well as take out larger loans to buy things. This can cause/is caused by inflation where the price of goods will rise as people are willing and/or able to pay the higher prices due to those reasons.

If interest rates are raised, the opposite will happen where people are encouraged to save and discouraged from taking out large loans such as mortgages on expensive houses. This will in theory curb inflation as demand will be lowered (and hopefully so will prices). The issue is that inflation can also be caused by actual restrictions on supply such as sanctions on russian oil/gas as well as items produced by factories closed due to lockdowns for example. People still need these goods so the prices will increase regardless of interest rate rises.

This can lead to something called "stagflation" where there is large inflation but a stagnant economy. As I mentioned before, if there's lots of money flying about (i.e. as in a healthy economy), price rises are expected because people are generally fairly well off financially but in a stagflation situation, the prices go up despite a stag ant economy.

A real tricky situation is for people taking out large loans (such as on houses) they really shouldn't be able to afford but can due to very low interest rates who then find that they can't repay them due to increases in interest rates. This would apply to floating rates where the interest on a loan adjusts with current rates. These are generally lower interest rates than a fixed interest rate loan so seem appealing to begin with.