The reason is simple. Extremely high levels of capacity utilization and low levels of unemployment create shortages in a market economy. As a result, inflation soon rises to intolerable levels.
In fact high inflation has been contained in high-income countries over the last decade. But low inflation in Europe was accompanied by steadily rising unemployment. Moreover soaring, prices have plagued many developing countries that relied too heavily on the printing press to finance government spending. Recently as formerly centrally planned countries took steps to free prices and make the transition to the market, they found their price levels increasing rapidly.