Euro zone inflation eased below the European Central Bank's target last month on surprisingly benign services costs, underpinning expectations for further policy easing even as global trade tensions fuel longer-term price pressures.

Euro-area inflation eased more than expected, dipping below the European Central Bank’s 2% target and supporting the case for interest rates to be lowered further.

Inflation was last at the central bank’s target in September and October of last year before rebounding.