German annual inflation slowed by 0.2 percentage points to 1.7 per cent in August as fuel and food prices fell.
The slowdown, which was more than forecast, suggests euro zone inflation could ease for the second month in succession.
Month-on-month, Germany's consumer price index (CPI) fell by 0.1 per cent, preliminary figures from the Federal Statistics Office showed today. Final data are due in mid-September.
The mid-range prediction of economists polled by Reuters last week was for German CPI to rise by 1.8 per cent year-on-year and be unchanged month-on-month.
The EU-harmonised index showed annual inflation easing by 0.2 points to 1.9 per cent, the lowest level since March.
The inflation estimate was based on figures from six German states, which provide the first indication of price trends in the wider euro area. Europe's largest economy accounts for nearly a third of the 12-nation bloc's price index.
Eurostat, the EU's statistics office, is due to provide an initial estimate of August inflation in the euro zone on August 31st. Last month annual inflation in the bloc eased by a tenth of a point to 2.4 per cent.