In a report, Eurostat said consumer price inflation held steady at a seasonally adjusted 1.3% in August, unchanged from an initial estimate and in line with expectations.
The rate remains below the European Central Bank's target of near but just below 2%.
Month-over-month, consumer price inflation rose 0.1% last month, in line with expectations.
Core CPI, which excludes food, energy, alcohol, and tobacco costs held steady at a seasonally adjusted 1.1% in August, in line with estimates and unchanged from a preliminary estimate.
Following the release of that data, the euro remained higher against the U.S. dollar, with EUR/USD rising 0.4% to trade at 1.3350.
Meanwhile, European stock markets held on to strong gains. The EURO STOXX 50 advanced 0.85%, France’s CAC 40 climbed 0.9%, Germany's DAX rallied 1.2%, while London’s FTSE 100 rose 0.85%.