Inflation across the eurzone rose to 1.5% hitting its highest level in four month in August, according to Eurostat, the European Union's statistics office, The Wall Street Journal reports.
The preliminary estimate for the month was up from July's rate of 1.3%.
This higher-than-expected has fuelled expectations that the European Central Bank might soon begin winding down its massive monetary stimulus programme.
However, Inflation in the 19-nation bloc remains well below the European Central Bank's target of close to, but below, 2%.
The biggest driver of inflation was the cost of energy, which went up by 4%. Processed food, alcohol and tobacco prices increased by 2%.
Whereas core inflation, which excludes energy prices, remained flat at 1.2%.
Although the the central bank’s 2% target officially focuses on the regular CPI, ECB president Mario Draghi has repeatedly stressed the need to look past volatile energy prices when deciding when the time is right to end its monetary stimulus policies.
Draghi will head into next week’s meeting facing a difficult combination of sluggish inflation – discouraging any imminent change in monetary policy – alongside healthy economic growth, which has led to calls for an end to the bank’s bond-buying programme and record low rates.