The primary objective of this research is to inquire into the connection between the consumer price index and the various variables include Urban Population, Trade, Military Expenditure, Primary Energy Consumption, and Electricity Generation. This research examines a cross-sectional sample of 21 European countries using panel ordinary OLS regression and fixed- and random-effects models for the period of 2000–2020. The results of this study indicates that Primary Energy Consumption has a significant inverse effect on CPI; its coefficient has a negative sign and is significant at the 5% significance level and urban population, military expenditure and Electricity generation show positive significant impact on Inflation, while trade does not have any significant impact on inflation.