Here's another perspective. There is really only one primary cause of inflation. It is an increase in money supply without a corresponding increase in production. Inflation is the primary side effect of a fiat currency whereby money is essentially created out of thin air. More dollars for the same goods means higher prices.

The low interest rates of the last few years have led to increased borrowing, which, thanks to fractional reserve accounting, is essentially an exercise in money creation. As it was obtained through borrowing, the primary recipient of the excess cash was the housing market; hence, the housing bubble. (Inflation 3% yeah right!). Eventually, through equity refinancing and credit cards, this excess cash found its way to other segments and finally to things that are measured by CPI.

Therefore, the main weapon we have to fight inflation is raising interest rates, which reduces the amount of future borrowing and slows the rate of growth of the money supply. If rates are raised enough, it will eventually have a deflationary effect, first on the housing market (where the bubble began).