According to the flash estimate, Eurozone year-on-year CPI inflation increased to 0.6% from 0.5% the previous month and this was the highest reading since May 2014.
The core annual rate was unchanged at 0.8% and both readings were in line with market expectations.
The annual decline in energy prices was slightly higher at 1.1% from 0.9% the previous month as oil prices faded from October highs, although this was still much higher than the 7.3% decline recorded for November 2015.
The annual increase in food and drink prices increased slightly to 0.7% from 0.4% previously.
The annual rate in non-energy industrial goods was unchanged at 0.3% compared with 0.6% in November 2015, while the services-sector rate was also steady on the month with a slight decline from the 1.2% rate seen in November 2015.
The data overall adds little to the inflation debate with relief over a gradual improvement in the headline rate offset by concerns surrounding a lack of upward trajectory for the underlying rate.
The data overall will maintain pressure for the ECB to sustain a very accommodative monetary policy over the next few months.
There was little reaction in currency markets with EUR/USD holding around 1.0640 amid month-end flows. Bunds edged marginally lower with a loss of 20 ticks on the day, while higher oil prices propelled the DAX into positive territory.