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

The outcome of the global trade war could meaningfully alter the euro zone's inflation path, the European Central Bank said on Thursday as it outlined several scenarios to its central view. In a mild scenario,

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.