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

Eurozone inflation fell to 1.9% in May, below forecasts, boosting expectations of an ECB rate cut on Thursday. Core inflation also eased to 2.4%. The euro slipped and bond yields fell as markets priced in a 25bp rate cut to 2.

Eurozone inflation fell below the European Central Bank’s 2 per cent target in May for the first time in seven months, as it considers a further cut to interest rates this week. May’s annual inflation reading of 1.