Growth of the euro zone money supply, as measured by the broad indicator M3, picked up again in September. This signalled a potential rise of inflationary pressures in the euro zone economy in the medium term, data published by the European Central Bank shows today.
M3 growth accelerated to 8.5% on an annualised basis in September from 8.2% in August, 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 8.2% in the period from July to September, also slightly faster than the 8.1% recorded for the months from June to August, the ECB said.
