At least 37 people were killed in the attack in Baghdad [Reuters]

At least 48 people have been killed after a car bomb struck a funeral ceremony in Baghdad, officials say.

Dozens were also wounded in the attack on Thursday, which took place in the predominantly Shia Muslim neighbourhood of Shuala, in the north of the Iraqi capital.

"A car bomb that exploded outside a tent where mourners were gathered for a funeral ceremony killed 37 people, and 78 were hurt," a defence ministry official told the AFP news agency.

Officials said that police who rushed to the scene were confronted by an angry mob that were throwing stones.

"The government arrests terrorists, they send them to prison, and then they release them the next day," Abu Mohammed Saadi, one of the funeral-goers, shouted.

"Take the criminals off the streets; don't release them so quickly!"

The military sent in soldiers to restore order.

'Terrorist bombings'

The blast caused part of the tent to collapse and left pools of blood and scattered pieces of clothing and shoes. Several cars were also completely destroyed, while the windows of nearby homes were shattered.

"The terrorists are carrying out these bombings now because they are angry over the successful formation of a new government and they want to try to foil the Arab Summit," Kamil Nassir al-Zaidi, the head of the Baghdad provincial council, said.

"But the summit will be held as scheduled despite all these bombings."

The funeral attack was the latest targeting Shia Muslims since a spate of car bombings last week killed 57 people outside the city of Karbala in southern Iraq.

In other incidents on Thursday, at least five people were killed and 21 others wounded by roadside bomb attacks, while a bomb placed inside a minibus killed at least two people and wounded seven.