Demand for housing in Europe is also huge as people move towards cities and supply hasn't caught up and struggles to catch up due to regulation and NIMBYism. This naturally leads to an increase in prices. The price changes of everyday items right now can be explained with effects from the pandemic.

Perhaps you are right and there is indeed a tipping point and we've crossed that point. Time will tell however people have also claimed we'd reach that tipping point any moment for the last 10 years or so, claiming Friedman was right because of the effects we now has strong broken clock vibes. Perhaps that's genuinely the case but it's still way too early to make that call.