Growth of the euro zone money supply, as measured by the broad indicator M3, slowed again in July, signalling a potential easing of inflationary pressures in euro zone economy in the medium term. This is according to data published by the European Central Bank today.
M3 growth slowed to 7.8% on an annualised basis in July from 8.5% in June, the ECB said in a statement.
M3 covers cash, overnight deposits, other short-term deposits, repurchase agreements, shares and units in money market funds and debt securities with a maturity of up to two years and is the ECB's preferred indicator of medium-term inflationary trends in the euro zone economy.
Because the monthly figures are subject to volatility, the ECB also calculates a three-month moving average for M3 growth, which stood at 8.3% in the months from May to July, also slower than the 8.7% recorded for the months from April to June, the ECB said.
