BRUSSELS, May 31 (AP/UNB) - Inflation across the 17 countries that use the euro fell by more than anticipated in May, official figures showed Thursday - a development that may fuel market expectations that the European Central Bank will cut interest rates next week.

In its first estimate, Eurostat, the European Union's statistics office, said annual consumer price increases slowed to 2.4 percent in May from 2.6 percent the previous month. The expectation in the
markets was for a more modest decline to 2.5 percent.

Though inflation is still running above the ECB's target of keeping price increases below 2 percent, the central bank is under pressure to lower its main benchmark rate from the current 1 percent
to help the ailing eurozone economy.

If it does cut interest rates, it will be the first time in its 13-year history that the main benchmark rate will fall below 1 percent.

Eurostat provided no reasons why inflation fell - more details will be provided on June 14. However, lower energy prices and weak economic activity are thought to be behind the fall.

Though recent figures showed that the eurozone as a whole managed to post flat growth in the first quarter of the year, seven of the euro's members are in recession, officially defined as two
consecutive quarters of negative growth.

There are huge disparities in the currency bloc, with Germany managing to eke out solid growth as its high-value exporters continue to benefit from the rebound in global trade in spite of the debt
crisis on their doorstep.

Other countries, notably those at the frontline of the debt crisis - such as Greece, Spain, and Italy - are seeing their economies shrink as governments take often drastic measures to get
their public finances into shape.