Inflation in the 17 countries sharing the euro was in line with expectations of economists polled by Reuters and unchanged from December, as rising unemployment cuts into household spending and pushes companies and businesses to freeze or reduce prices.

Although the reading was only a first estimate by the European Union's statistics office Eurostat, economists see inflation slowing over the next few months as many of the euro zone's nations slip into a brief recession in 2012.

With a benign inflation outlook, economists also expect the ECB to take rates below 1 percent for the first time ever in the coming months, perhaps as early as the bank's meeting on February 9.

A Reuters poll of some 66 economists in early January suggested the bank will cut interest rates to a new record low of 0.75 percent in February or March.

Inflation is still above the ECB's target of below, but close to 2 percent, which the Frankfurt-based bank judges to be right for price stability and a healthy economy.

But full inflation data in December showed that after stripping out volatile energy prices -- driven up by crude oil globally over concerns about a supply disruption in Iran -- core inflation was 1.9 percent in December.

Supporting that, Spanish inflation rose less than expected in January to 2 percent, separate data showed on Tuesday. Germany, the euro zone's largest economy, reported slowing consumer price rises on Monday.

(Reporting By Robin Emmott; editing by Rex Merrifield)

• A Permanent Economic Emergency