Eurozone inflation dropped sharply to 1.2 per cent in May, data showed on Tuesday, raising the spectre of a global economic slowdown. 

Analysts surveyed by data company Factset had predicted a more modest drop in inflation to 1.4 per cent, down from the 1.7 per cent logged in April.

The latest data puts consumer prices in the 19-nation single currency bloc even further from the European Central Bank's inflation goal of just below 2.0 per cent.

Eurozone unemployment meanwhile dropped to 7.6 per cent in April, down from 7.7 per cent in March. 

This marked the lowest rate recorded in the 19-nation single currency bloc since August 2008.

The drop in consumer prices landed a day after data showed that factory output in the eurozone fell close to a six-year low in May.

This has compounded fears that international trade turbulence caused by the protectionist offensive by US President Donald Trump against China and other partners is destabilising the world economy.

Economists say investor confidence is shaken by US-led trade war, putting pressure on the ECB governors to do more to boost the economy when they meet on Thursday.

The ECB's firepower is limited, however, after years of very low rates and other unprecedented steps to boost lending and growth in Europe.