Inflation remained above the Bank of England's 2% target for the third consecutive month in December, according to official figures.

The Office for National Statistics said the Consumer Prices Index remained static at 2.1% last month, which was in line with most analysts' forecasts.

The ONS said that lower gas and electricity bills and cheaper furniture offset the rising cost of food.

The latest data will not please policymakers at the Bank of England.

It had been widely expected that members of the Bank's Monetary Policy Committee would lower borrowing costs next month as the economy continues to slow down, but the CPI figure may mean they opt not to cut interest rates.

The Bank's inflation targets are likely to come under increased pressure this year as household bills - which remained unchanged in December compared with price hikes a year ago - are set to rise again as energy companies up their tariffs.

While oil prices surged to almost $100 a barrel last month, a jump in costs the previous December lessened the impact of price rises.

However, the cost of food - including a range of vegetables such as tomatoes, onions and cabbages, and bread, cereals and sugar - added to inflation, as prices grew at their fastest annual rate since April last year.

The ONS said that clothing and footwear costs also contributed to inflationary pressures, even though many retailers recorded lower-than-expected sales over the Christmas period.

It also said that stores actually cut prices by less last month than in the previous December, with the cost of women's dresses most affected.

Meanwhile, the headline Retail Prices Index inflation benchmark, which is often seen as a more accurate representation as it includes mortgage payments, fell from 4.3% to 4% in December. This was due to lenders passing on last month's interest rate cut, while borrowing costs remained unchanged the previous year.

Global Insight's chief UK economist Howard Archer said policymakers are "far from out of the inflation woods yet".

He added: "Rising utility bills, elevated food prices and a weaker pound will exert significant upward pressure over the coming months."

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