BERLIN, Jan. 6 (Xinhua) -- The inflation rate in Germany remained at minus 0.3 percent in December 2020, according to preliminary data published by the Federal Statistical Office (Destatis) on Wednesday.

Energy prices, including motor fuels and household energy, even declined by six percent in December, according to Destatis.

Low energy prices and the reduction in value-added tax (VAT) in Germany in the second half of last year were the "determinants" of the low inflation rate, said Nils Jannsen, senior researcher at the Kiel Institute for the World Economy (IfW Kiel), in a statement.

Rents in Germany defied the negative trend and increased by 1.3 percent in December, according to Destatis. Services in Germany were also more expensive, with prices rising by 1.1 percent.

According to the preliminary results, the annual inflation rate in Germany last year stood at 0.5 percent, down from 1.4 percent in 2019. The final results are scheduled to be released on Jan. 19.

"At the beginning of this year, consumer prices picked up significantly," said Jannsen. In addition to the return of VAT to 19 percent and the recent decline in the dampening effects of energy prices, consumer prices could rise by more than two percent this year. Enditem

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