Berlin  - European consumer prices edged their way back towards positive territory in August, the European Union's statistics office said Monday, with inflation climbing to minus 0.2 per cent this month.

Inflation in the 16-member eurozone stood at minus 0.7 per cent in July with a drop in economic demand and a fall in energy costs having undercut inflationary pressures.

The climb in consumer prices during August was more than the minus 0.3-per-cent forecast by economists and comes ahead of a meeting Thursday of the European Central Bank.

However, energy prices, notably oil, have picked up in recent weeks amid signs that the world economy is on a recovery course from the its biggest slump in more than 60 years. (dpa)