Berlin - European inflation sunk to zero in May, its lowest point in 18 years, the European Union's statistics office said in final figures released Tuesday.

The May inflation reading for the 16-member eurozone was in line with analysts' forecasts and compared to an annual rate of 0.6 per cent in April.

Eurozone consumer prices also significantly undershot the European Central Bank's (ECB) annual inflation target of close to but below 2 per cent.

The release of the figure follows a warning from the ECB that inflation in the currency bloc could briefly tumble into negative territory during the year as a result of slowing economic demand as well as falling energy and food prices. (dpa)