Headline consumer inflation accelerated to 2.1 percent year-on-year from 2.0 percent in June, while core inflation, which excludes energy costs as well as unprocessed food, rose to 1.3 percent year-on-year from 1.2 percent in June, beating economists' expectations.
Germany's 10-year government bond yield, the benchmark for the bloc, rose a basis point to 0.44 percent from 0.43 percent just before the release of the data.
Other euro zone bond yields also came off their lows, rising about a basis point across the board.
A long-term gauge of market euro zone inflation expectations, the five-year, five-year breakeven forward, extended its rise after the data.
The measure, followed closely by the European Central Bank, rose to 1.7454 percent - its highest level in over five weeks.