Dutch central bank head and European Central Bank governing council member Klaas Knot said on Monday that the ECB should act in the face of high inflation and that gradual but timely normalisation of policy is needed, reported Reuters. High inflation is not entirely due to the supply shock and demand has recovered far quicker than expected, Knot added.  

Knot's remarks comes after data last week showed Eurozone inflation to have risen to a record 7.5% YoY in March, according to the headline Consumer Price Index and comes amid increased media reporting on rising food costs.