Euro zone inflation eased below the European Central Bank's target last month, data showed on Tuesday, underpinning expectations for another interest rate cut this week, even as global trade tensions fuel longer-term price pressures.

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.