A small European Central Bank interest-rate increase could temper inflation without causing significant economic damage, Governing Council member Yannis Stournaras told Liberal.gr. He said a "measured adjustment" toward more restrictive monetary policy would help limit second-round effects from inflation without disproportionately affecting economic activity.

Markets and economists are betting on a quarter-point hike at the ECB's June meeting, with several policymakers indicating they would support such a step. Stournaras noted there is currently no strong evidence of second-round effects from inflation, though he warned of heightened uncertainty about the duration and intensity of the energy shock.

The typically dovish central banker highlighted risks from potential damage to energy infrastructure in the Gulf, which could prolong inflationary pressures over the medium term. He pointed to longer delivery times and rising input costs as signs that supply chains are coming under increasing pressure.