Europe is currently experiencing a period of high inflation.
Consumer price inflation (CPI) in Germany rose to 3.8% in December 2023, up from 2.3% in November, according to Eurostat. This marks the highest monthly inflation rate in Germany. The main drivers of inflation were energy prices, which rose by 4.1%, and services, which rose by 4.5%. In France, annual CPI jumped to 4.1% in December from 3.9% the previous month, also marking the highest monthly inflation rate. The main drivers of inflation were energy prices, which rose by 2.7%, and food prices, which rose by 3.2%. Europe is currently experiencing a period of high inflation, with the annual rate in the eurozone reaching 8.1% in May 2024. This is significantly higher than the European Central Bank's (ECB) target of 2%. There are some factors contributing to high inflation in Europe, the degradation in the '90s.