AN official estimate showed Germany's annual inflation rate picked up to 1.7 percent in December, with higher oil and fuel prices helping push the rate higher.

The Federal Statistical Office yesterday said annual consumer price inflation was up from 1.5 percent in November.

Data from Germany, Europe's biggest economy, are important for interest rate decisions by the European Central Bank. The bank has kept its main interest rate at 1 percent since May 2009 and shows no signs of raising it any time soon.