Jean-Claude Trichet, European Central Bank president, sounded the alarm on Wednesday over the spill-over effects of soaring oil prices, saying “first signs” were emerging that inflation dangers had spread into eurozone labour markets.

Mr Trichet’s comments in the European Parliament highlight the ECB’s fear that wage growth is accelerating worryingly across the 15-country eurozone, threatening its attempts to bring high headline inflation rates back under control. The ECB was “strongly concerned” about such “second-round” effects, he said.