By Doug Cameron 

The Pentagon said Thursday that the estimated cost of its biggest weapons programs fell slightly last year to $1.62 trillion, though much of the decrease reflected assumptions about lower future inflation.

The Defense Department's annual update on the cost of new submarines, missiles and other equipment included a 1.9% drop in the estimated cost of the F-35 fighter program compared with 2013 following a concerted effort by Lockheed Martin Corp. and its partners to make the plane more affordable.

The report is closely watched as an indicator of the Pentagon's effort to improve the efficiency of the way it designs and buys new weapons, as Congress continues its scrutiny of the latest defense-budget request.

The Obama administration and military chiefs want Congress to authorize spending for fiscal 2016 above existing budget caps, warning that further reductions would harm national security.

Overall, two thirds of the 79 weapons programs tracked in the report reported lower costs in 2014 compared with the previous year.

Write to Doug Cameron at doug.cameron@wsj.com

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