Eurozone consumer prices rose at an annual rate of 1.3% in July as weaker oil prices and a stronger euro currency helped keep a lid on inflationary pressures.
The headline consumer price index (CPI) held at the same rate as in June, matching analysts' forecasts.
However, the core level of inflation, which strips out energy and food costs, rose by 1.2% annually in July, up from 1.1% in June and higher than forecasts of a repeat of June's 1.1% pace.
ECB target rate
Headline CPI has remained below the European Central Bank's 2% target since briefly hitting that level in February and has been at, or below, target since the beginning of 2013 according to data from Eurostat.
European Central Bank officials meet on Wednesday, but as the bank's summer break is about to begin, there will be no changes to policy at this meeting.
Inflationary pressures ease
Although growth has recovered well in the eurozone during 2017, analysts expect the ECB to keep its main refinancing rate on hold at the current rate of 0% for at least the remainder of the year as inflationary pressures have eased.
The strong euro is partially responsible for the easing of inflationary pressures. A strong currency lowers the costs of imported goods, services, fuel and raw materials, meaning less inflation is imported into business activity.
Against the dollar, the euro has gained more than 10% this year, while the single currency has gained nealy 5% against the pound.
Also on Monday, the rate of unemployment fell in the eurozone – another signal of rising confidence among the region's employers that economic growth remains robust.
The unemployment rate eased to 9.1% in June, from 9.2% in May and beat forecasts of a repeat of the 9.2% level.
"While the economic euphoria continues in the Eurozone with strong growth and improving labour markets, inflation remains miles away from the ECB target," said Bert Colijn senior eurozone economist at ING.
He added: “In fact, continued weakness in oil prices and strength in the euro make continued weakness in inflation likely.”