Euro zone inflation steady at 2.4%, keeping June rate cut in play as economy returns to growth

Price rises in the 20-nation euro area held steady at 2.4% in April, while the economy returned to growth in the first quarter, according to flash figures published Tuesday.

Headline inflation of 2.4% was in line with the forecast of economists polled by Reuters.

Core inflation, excluding energy, food, alcohol and tobacco, dipped to 2.7% from 2.9% in March.

Gross domestic product meanwhile rose by 0.3% over the first three months of the year, following a 0.1% contraction in the fourth quarter in the eurozone.

Market expectation is mounting for the European Central Bank to start cutting interest rates at its next monetary policy meeting on June 6. Money market pricing currently indicates a nearly 70% probability of a June trim, according to LSEG data, with even higher bets on a cut in July or September.

A host of voting ECB members told CNBC earlier this month that they are anticipating an interest rate reduction in June, citing the need to prevent an excessive slowdown in the euro zone economy. They also flagged risks from oil prices and volatility in the Middle East.

This is a breaking news story and will be updated shortly.