Euro zone June consumer prices were flat compared with the previous month, according to data today that was in line with economists' expectations.
The report, which was accidentally released earlier than scheduled on the Eurostat website, confirmed a flash estimate and showed the inflation rate fell from May's two-year high of 2.5 per cent to 2.4 per cent.
"The easing in the annual rate of inflation, although in line with expectations, may come as a relief to those fearing a potential (interest) rate hike in the not too distant future," said Mr Jodie Saul, associate economist at CIBC World Markets.
The European Central Bank aims to keep inflation close to, but below, 2 per cent and it was the second month running that inflation has come in above this level.
But the bank is already braced for a period of inflation above 2 per cent and Governing Council member Christian Noyer said earlier this week that interest rates, at 2 per cent, were appropriate to ensure medium-term price stability.