The annual inflation rate in the eurozone dropped from June's minus 0.1 percent to minus 0.7 percent in July, a record low, according to official figures released on Friday.
The rate was lower than the 0.6-percent fall, which the EU's statistics agency Eurostat initially estimated for July. A year earlier, the rate was 4.0 percent.
July was the second month in a row that the consumer price rate was below zero in the 16 nations sharing the euro and was due to the global financial crisis , according to Eurostat.
In the 27-nation EU, annual inflation was 0.2 percent in July 2009, down from 0.6 percent in June. A year earlier the rate was 4.4 percent.
Among member states, the lowest annual rate was observed in Ireland with minus 2.6 percent, while the highest was in Romania, with 5.0 percent.
Falling inflation in Europe in recent months is seen as a barrier economic recovery as consumers await prices to fall further, thus impeding demand.