Loans to euro zone consumers for house purchases grew last month at one of the fastest rates since the introduction of the euro in 1999, despite signs house prices may have cooled.

The data, showing lending for property purchases increasing at an annual rate in excess of 10 per cent, came as the European Central Bank (ECB) reported money supply growing last month at the strongest rate for almost two years.

The figures are likely to fuel ECB fears about the inflationary impact of low borrowing costs. Unlike other central banks, the central bank regards monetary aggregates as an important indicator of likely future inflation trends.

Jean-Claude Trichet, the central bank's president, is widely expected to take a noticeably more "hawkish" stance at its interest-rate-setting meeting next week.

"The timing of the next ECB rate increase is definitely going to be back on the agenda unless we get another spike in oil prices or the euro really appreciates," said Julian Callow, economist at Barclays Capital.

Nevertheless, the euro zone's still weak growth has put the ECB in a dilemma and it is not expected to raise rates for some months.

Before the summer break European politicians were demanding cuts in interest rates, and although there are signs of an improvement in the outlook, growth remains patchy.

So far, the European Central Bank has left rates unchanged at 2.0 per cent for 26 months running.