Germany's inflation rate is expected to go down in 2006 due to the decline of the oil prices, the Federal Statistics Office reported on Friday.

The inflation rate will fall to 1.7 percent from two percent in 2005, the office said, adding that November's inflation rate edged up 1.5 percent from the same month a year ago.

Compared with October, the index in November will decrease by 0.1 percent, the office said.

Based on provisional information compiled from six of Germany's 16 states, the office said that the inflation edged up 1.5 percent compared to the same month in 2005.

The annual inflation rate reached the lowest in 2.5 years in October and September with the respective rates falling to 1.1 percent and 1.0 percent.

However, the office indicated that the inflation will go up in 2007 due to the planned three percent increase of the value-added tax.