Economists polled by Reuters had been expecting the May reading to come in at 2%, which is the European Central Bank's target.

Europe has succeeded in bringing inflation under control after a surge driven by the end of the Covid-19 pandemic and Russia’s invasion of Ukraine, the head of France’s central bank said.

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.