Figures from the EU's statistics agency Eurostat show the cost of fruit, vegetables and tobacco as having risen in the last year, while the cost of medicines and communications fell.

Ireland recorded a lower than average annual inflation rate of 0.7%. Greece, Bulgaria and Denmark had the lowest inflation rates overall, while Estonia, Romania and Netherlands all experienced inflation rates greater than 3%.

The overall Eurozone rate of inflation is lower than the ECB's targets, and could mean that the bank's record low interest rates will remain in place for the coming months.

Earlier in the week, it was confirmed the Eurozone has exited recession with a surprise 0.3% growth in the second quarter of the year.

The Eurostat agency said the 18-month downturn which has cost millions of jobs and crushed debt-laden governments around the single currency area ended thanks in large part to better-than-expected gains of 0.7% in Germany and 0.5% in France.