German annual inflation measured by consumer price index (CPI) slowed to 0.8 percent in July following a temporary pick-up in the previous month, said German Federal Statistical Office (Destatis) based on its preliminary calculation.

The European Central Bank decided last month to cut interest rates for stimulus, and German consumer prices rose by 1.0 percent year-on-year in June, following a price increase of 0.9 percent in May, which was the lowest level in four years.

The Destatis data showed energy prices declined by 1.5 percent in July, while food prices rose slightly by 0.1 percent.

When measured by harmonized consumer price index (HCPI), ECB's yardstick, German inflation rate also fell to 0.8 percent in July from 1.0 percent in June.

Analysts said the weak inflation in the Europe's largest economy indicated that ECB's measures against falling prices had yet to have influence, and the euro zone was still under the pressure of deflation risks.

The European Union was scheduled to release July inflation data on Thursday. Economists expected the euro zone annual inflation would remained at 0.5 percent as it was in June.