A sustained rise in the amount of euros and euro-denominated savings and securities in circulation, as well as a surge in prices recorded in two German states on Thursday provided further ammunition for the European Central bank to raise interest rates next week.

The ECB said the so-called M3 money supply - which it deems an indicator for future price trends - grew at an annual rate of 10.5 per cent in May, maintaining the strong rate of growth already seen the previous month.