This was in line with expectations. Analysts had on average expected inflation to fall to 0.7 percent.
The new figure compares with 1.3 percent in June.
Energy prices fell sharply in July, which contributed to the lower inflation rate according to the CPI and CPIF, says Mikael Nordin, price statistician at Statistics Sweden.
The unusually low inflation is affected, among other things, by the temporary tax cut on fuel and the government subsidy for monthly public transport passes that was introduced on July 1.
"Inflationary pressures are low and highly dependent on the government's tax policy. Excluding this, it would have been closer to the inflation target of 2 percent," says Susanne Spector, chief economist at Danske Bank.
However, inflation is not so low that there is reason for the Swedish Central Bank to lower the interest rate, she says.
The inflation rate measured by the CPI fell to 0.2 percent, down from 0.7 percent in June.
The Swedish Central Bank's inflation target is CPIF inflation - where the effects of mortgage interest rates have been removed - of 2.0 percent.
