A eurozone recession will not bring down inflation, a European Central Bank policymaker has warned, claiming the ECB should opt for another big interest rate hike next month.

The ECB raised rates by 0.5 percentage points in July from zero and a similar move is being priced in for its next rates meeting on September 8. However, some policymakers have started talking about an even bigger increase as the outlook is deteriorating.

ECB policymaker Martins Kazaks said further hikes should be considered. "Frontloading rate hikes is a reasonable policy choice," said Mr Kazaks, Latvia's central bank chief.

"We should be open to discussing both 50 and 75 basis points as possible moves."

As he spoke on the sidelines of the US Federal Reserve's Jackson Hole Economic Symposium, he added: "From the current perspective, it should at least be 50."

In Association with

At 8.9%, inflation is more than four times the ECB's target of 2% and it is still likely to go higher before a slow retreat. Here in Ireland, it has hit 9.6% on the Eurozone measure.

Underlying inflation, which filters out volatile food and energy prices, is also high.