ECB urged to hike interest rates in July to fight inflation surge

Although inflation is primarily fuelled by soaring energy prices, there is "disturbing evidence" that price growth is gaining momentum and is becoming more widespread, Mr Nagel said.

A July hike to the ECB's deposit rate, currently at a record low -0.5% after eight years in negative territory, would be a remarkable turnaround for the ECB.

The ECB should raise interest rates in July to stop high inflation from becoming entrenched, German Bundesbank chief Joachim Nagel said, joining an already long line of policymakers calling for quick rate moves.

With inflation soaring to a record high 7.5% in the eurozone last month, policymakers are increasingly advocating a rapid unwinding of stimulus, and several, including ECB board member Isabel Schnabel, have made the case for a rate hike already in July.