Berlin  - Annual German inflation tumbled into negative territory in July, sliding to minus 0.6 per cent from zero in June, the nation's statistics office said Wednesday, as a result underscoring concerns about deflation in Europe.

The decline in consumer prices in Europe's biggest economy, which followed this year's dramatic slowdown in economic growth and falling energy costs, was bigger than the minus 0.4 per cent forecast by economists.

The preliminary German price data comes amid dwindling inflationary pressures across Europe.

Inflationary data to be released Friday is forecast to show consumer prices in the 16-member eurozone falling to minus 0.4 per cent in July after they slipped into negative territory in June.

The fresh signs of falling inflation in Europe also come as part of the buildup to next week's meeting of the European Central Bank (ECB).

However, the ECB has warned for sometime that it expects the recent sharp fall in oil prices and the global recession would tip the eurozone into a temporary period of deflation.

Many economists believe that consumer prices could gain ground later this year as the global economy picks up.

Nevertheless, there are concerns that a protracted period of deflation could undercut hopes of a recovery in Europe from what has been the biggest economic downturn in more than 60 years.(dpa)