Euro zone inflation figures for July were revised downwards yesterday, helping to assuage central bankers' worst fears about price pressures at a time of robust economic growth in the 12-country region.
Annual inflation last month fell to 2.4 per cent, from 2.5 per cent in June, according to Eurostat, the European Union's statistical unit.
An earlier flash estimate had shown no change between the two months.
The positive surprise followed data earlier this week showing that euro zone gross domestic product grew by 0.9 per cent in the second quarter - the fastest growth rate for six years.
"Unlike the US, the euro zone still enjoys the Goldilocks combination of satisfactory growth at subdued inflation," said Holger Schmieding at Bank of America.
US inflation data this week also suggested inflationary pressures were weaker than feared. But economists see the US Federal Reserve as facing the harder task in curbing price rises.
"There's a lot more evidence of stronger US inflation pressures, such as in wages," said Julian Callow at Barclays Capital.
The European Central Bank (ECB) is expected to press ahead with further interest rate rises later this year, however, and may possibly signal an October rise at its next meeting on August 31st.
The ECB aims to keep inflation "below but close" to 2 per cent.
Core euro-zone inflation, excluding volatile oil and unprocessed food prices, has remained moderate - although yesterday's data showed the core rate accelerating to 1.6 per cent in July, from 1.5 per cent in June.
