European Central Bank ready to ‘stamp out’ surging inflation

European Central Bank President Christine Lagarde speaks with Hungary’s Prime Minister Viktor Orban in Brussels (AP)

The head of the European Central Bank (ECB) has said it will move gradually to combat soaring consumer prices with interest rate hikes in July and September, but will keep its options open to “stamp out” inflation if it surges faster than expected.

In a speech opening an ECB forum on central banking in Sintra, Portugal, bank president Christine Lagarde used strong terms as policymakers target inflation running at a record 8.1% in the 19 countries using the euro.