Eurozone inflation rate falls
Eurozone inflation fell to 0.5 per cent in May, down from 0.7 per cent in April and well below the European Central Bank's two per cent target.
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The fall means the ECB will be expected to take steps to boost growth and counter the threat of deflation when it meets on Thursday.
Figures from EU statistics office Eurostat also showed that the eurozone unemployment rate fell slightly to 11.7 per cent in April from 11.8 per cent in March.
The drop means 18.75 million were unemployed in April, the BBC has reported.
In total, the number of people unemployed fell by 76,000 between March and April.
There were wide variations across the eurozone. Austria had the lowest unemployment rate at 4.9 per cent, closely followed by Germany with 5.2 per cent.
In Greece, unemployment was 26.5 per cent in February, while Spain had a 25.1 per cent unemployment rate.
The continued high unemployment rate is reflected in the eurozone's weak growth rate, with the bloc's economy expanding by just 0.2 per cent in the first three months of the year.
Inflation has also fallen in the past year, increasing concerns that the 18-country eurozone could fall into deflation - a sustained period of falling prices.
This can hit growth as consumers delay purchases in hope of picking up bargains, and businesses postpone investment.
Analysts say the central bank could cut its deposit rate to below zero and reduce its main borrowing rate to address the problem.
"The ECB has consistently underestimated the deflationary forces threatening Europe and now is the time for unconventional monetary policy," said Dominic Rossi, global chief investment officer, at Fidelity Worldwide Investment.