Spanish and German inflation puts spotlight back on ECB interest rate intentions

The sustained surge in the cost of living is putting further pressure on Europe's central bank to raise interest rates

ECB chief economist Philip Lane: The former Irish central bank head says ECB should raise interest rates by 25 basis points in July and September. 

New figures showing that consumer inflation jumped again in Germany and Spain this month has again raised the risks that the ECB will be forced to hike interest rates aggressively this year.

Consumer prices rose by an annual 8.7%, while German import prices registered their biggest increase since September 1974.