Euro zone consumer prices were unchanged in August, driving the 12-nation region's annual inflation rate down to 2.7 percent from 2.8 percent in July, Eurostat said on Tuesday.
This is the third consecutive month that the annual inflation rate has moved closer to the European Central Bank's self-imposed two percent ceiling and will be welcome news to the bank, which cut rates on Monday in coordination with the U.S. Federal Reserve.
The data was in line with economists' expectations.
Core inflation, which strips out energy, food, alcohol, and tobacco prices, rose 0.2 percent from the previous month and by 2.0 percent from a year earlier.