Euro zone inflation eased by more than expected to its lowest level in more than a year in May, giving the European Central Bank a little more room to lower interest rates to help revive economic growth across the continent.

Consumer price inflation in the 17 nations sharing the euro fell to 2.4 per cent year-on-year in May from 2.6 per cent in April, the EU's statistics office Eurostat said today.

Economists polled by Reuters had forecast inflation of 2.5 per cent.

It was the lowest level since February 2011, albeit still above the ECB's medium-term target of close to, but below, 2 per cent.

The ECB meets next on Thursday for its June rate decision and a majority of economists predict a rate freeze until the end of 2013, although a growing minority see a rate cut before the end of this year.

Reuters