German consumer prices, harmonised to compare with other European Union countries, had risen by 3.8% year-on-year in December.
Economists pay close attention to such data as Germany and France publish their figures ahead of expected euro zone inflation statistics on Thursday.
French figures showed EU-harmonised inflation falling to 3.4% in January from 4.1% in December.
"It's unclear if this suffices to see tomorrow's print for the whole block coming in below consensus expectation of 2.8%," said Mateusz Urban, senior economist at Oxford Economics, referring to German and French inflation data. "But if so, this would raise the odds of an April ECB cut."
Euro zone inflation is expected to dip to 2.8% in January from 2.9% a month earlier, according to economists polled by Reuters.
"I am now convinced that we have tamed that greedy beast," European Central Bank (ECB) policymaker Joachim Nagel said on Tuesday.
The ECB has raised interest rates by the most in the euro's history to bring inflation down from double digits. The bank is now expected to start cutting borrowing costs in the spring.
The driver of the decline in German inflation was energy prices, which were 2.8% lower than in the same month a year earlier, despite the end of a government measure capping energy prices and the introduction of a higher carbon price.
Core inflation, which excludes volatile food and energy prices, was at 3.4% In January, down from 3.5% in the previous month.
(Reporting by Bartosz Dabrowski and Maria Martinez, editing by Rachel More and Bernadette Baum)
By Maria Martinez
