"The economy is recovering and the labor market is doing quite well, but we think core inflation will be at 1 percent and below for the rest of 2017", said Marco Wagner, economist at Commerzbank.
The biggest downside risk from within the single currency area was Italy, Barclays added, which they still expected to hold elections in the first quarter of 2018.
While a Purchasing Managers' Index pointed to broad-based economic growth, price pressures showed further signs of easing in July.
Eurozone unemployment rate decreased in June to the lowest level in more than eight years, figures from Eurostat showed Monday.
The price of industrial goods outside the energy sector rose 0.5% from 0.4% the previous month while the services-sector inflation rate slowed slightly to 1.5% from 1.6%.
The healthier state of the bloc's economy could support European Central Bank's plans to begin a tightening of monetary policy in autumn, although headline inflation remained stable at 1.3 percent in July, below the ECB target of below but close to 2 percent.
The eurozone is still working off the effects of a crisis over high government and bank debt that forced member governments to bail out member governments Greece, Ireland, Portugal and Cyprus and Spain's banks. UniCredit on Thursday raised its forecast for the euro-dollar rate to $1.20 for the end of the year and an "equilibrium" rate of $1.25 for end-2018, from $1.14 and $1.18 respectively before.
Officials will have ample time to ponder economic data and policy options ahead of their September 7 meeting, and probably even thereafter. It is seen at 0.3 percent, the highest rate since February, after months of hovering between 0.1 and 0.2 percent.
The report will provide more fuel to the debate among policymakers at the Bank of England over when to raise interest rates from their record low of 0.25%.