Euro zone inflation hit a four-month high of 2.1 per cent in August to climb back above the European Central Bank's 2 per cent tolerance threshold from 1.9 per cent in July, Eurostat said today.
The European Commission said that the data, which was stronger than economists had expected, should scotch talk of deflation in the 12-member bloc.
Economists polled by Reuters had expected the early estimate of inflation to rise to 2 per cent given recent national data had shown higher energy costs were lifting consumer prices.
Although the data came in above its expectations, Eurostat confirmed that rising energy costs were having an impact on the inflation rate of the 12-member bloc.
The data comes ahead of an ECB meeting next week, at which the bank is expected to leave its key interest rate unchanged at 2 per cent.
The European Union statistics office will release more details, including the monthly change in consumer prices and breakdowns by country and product, later in September.