Die deutsche Inflation fällt im Juli weiter auf 1,8%

German inflation fell slightly more than expected to 1.8% year on year in July, preliminary data from the federal statistics office showed on Thursday.

Analysts polled by Reuters had forecast EU-harmonised inflation decreasing slightly to 1.9% from 2.0% the previous month.

Germany's core inflation rate, which excludes volatile food and energy prices, remained unchanged at 2.7% in July.

The German data comes ahead of the euro zone inflation release on Friday. Inflation in the bloc is expected at 1.9% in July down from 2.0% in the previous month, according to economists polled by Reuters.

The European Central Bank left interest rates unchanged last week and offered a modestly upbeat assessment of the euro zone economy, raising doubts among investors about further policy easing.