Eurostat announced on Friday prices rose by 0.1% year on year, confirming its initial estimate of two weeks ago. Month-on-month, prices rose by 0.2%.
 
The return of the Eurozone to inflation comes as good news for the ECB’s Governing Council which meets next Thursday to determine whether its monthly purchase of 80 billion euros ($89 billion) of assets, along with zero interest rates and free loans offered to banks, are sufficient to prevent a deflationary spiral.
 
However, ECB’s target was 2% but current inflation figures are well below that. Prices had not risen in the 19 countries using the euro since January, with deflation in three of the subsequent four months and a zero reading for March.
 
The ECB has promised to take any action needed to preserve financial stability after Britain voted on June 23 to leave the European Union. The inflation figures provide little comfort. The Bank of England shocked markets on Thursday by not cutting interest rates as it awaits data showing the impact of the referendum vote. Further action is expected to be taken in August.