Euro zone inflation eased by more than expected in May, reflecting dips in Germany and Spain among others and supporting European Central Bank policymakers wanting only slow adjustments to rates and monetary stimulus.
Inflation in the euro zone slipped to 1.4%, its lowest level since December, from 1.9% year-on-year in April, statistics agency Eurostat said today.
This was slightly below expectations in a Reuters poll of 1.5%.
The inflation measure which excludes the volatile energy and unprocessed food prices also fell - to 1% from 1.2%, in line with expectations.
The ECB, which meets next week, wants to keep inflation below, but close to 2% over the medium term.
It has been buying €60 billion worth of bonds per month to inject more cash into the economy and drive price growth closer to its target.
Reuters said yesterday that ECB policymakers were set to take a more positive view of the economy when they meet on June 8 and will even discuss dropping some of their pledges to ramp up stimulus if needed.
Having fought off the threat of deflation with years of extraordinary stimulus, the debate within the ECB is shifting to the pace of normalisation, pitting doves who want incremental changes against conservatives who fear that the ECB could miss its cue, forcing more abrupt moves later.
Today's inflation data comes against a background of improved economic performance.
Euro zone unemployment dropped to an eight-year low in April of 9.3%, Eurostat also said today.
Analysts said this would in the past have implied annual wage growth rising to 2% or more, suggesting core inflation should pick up gradually.
Economic growth, meanwhile, is running at an annual rate of around 1.7% - not particularly strong, but faster that in recent years.
Within the May data, energy prices increased by 4.6% year-on-year, Eurostat estimated, from a 7.6% rise in April.
Unprocessed food costs were 1.6% higher than a year earlier, against 2.2% in April.
Services inflation also dropped back to 1.3% from 1.8%.
