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Eurozone's headline inflation eased far more than expected in May to its lowest level in over a year, preliminary estimates from Eurostat showed on Tuesday.
Inflation slowed to 1.2 percent in May from 1.7 percent in April, while economists had predicted a 1.5 percent price growth.
The latest inflation rate was the lowest since April last year, when it was at the same level.
Core inflation, which excludes prices of energy, food, alcohol & tobacco, eased to 0.8 percent from 1.3 percent. Economists had expected a rate of 1.1 percent. In March, core inflation was 0.8 percent.
Energy inflation remained the highest among main components, despite easing to 3.8 percent from 5.3 percent. Prices of food, alcohol and tobacco grew 1.6 percent after a 1.5 percent increase in April.
Services costs rose 1.1 percent year-on-year following a 1.9 percent climb in the previous month. Prices of non-energy industrial goods increased 0.3 percent after a 0.2 percent rise in April.
