UK inflation remained at 2.1% in November despite the impact of rising fuel and food prices, figures from the Office of National Statistics.

Despite soaring petrol costs, gas and electricity bills have fallen by 5.6% over the past year since record prices in 2006 and this has helped to keep inflation in check.

The figure of 2.1% is just over the government's target of 2.0% and may give the Bank of England scope to consider a further interest rate cut in early 2008 in a bid to revive the UK's fragile economy.

Many analysts had expected soaring food and raw material prices to drive inflation up but the ONS said that the rising cost of bread and milk had been partly offset by falling vegetable prices.