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Eurozone inflation was higher than anticipated in November buoyed by rising oil prices. MOREINFO: * Eurozone inflation highest in 6 years * Germany against EU emissions proposal * European investors remain jittery over world economy fears SCRIPT: Expensive oil and food prices boosted eurozone inflation in November to the highest level in six and a half years - higher than initially expected. Eurostat said consumer prices in the 13 countries rose 3.1 percent year-on-year - higher than the 3.0 percent that shaped markets expectations. The European Central Bank wants to keep inflation below 2 percent but left interest rates unchanged last week because of concerns about the full impact of the global credit crunch on the eurozone economy. Economist and the ECB expect above-target inflation to last for much of 2008. /// And one of the reasons behind inflation in the Eurozone, oil, gave up early gains on Friday, pressured by an advance in the dollar to six-week highs and a warning from OPEC that an economic slowdown in 2008 could dampen near-record oil prices. The market had received an early boost from the International Energy Agency, which in contrast to OPEC, predicted no let-up in oil demand growth next year despite high prices. /// And high oil prices are not standing in the way of Germany's motorists. Germany, a major manufacturer of heavy luxury cars backed away from a key European Union target for cutting greenhouse emissions from cars. Berlin said they would not accept proposals to force carmakers to reduce carbon dioxide emission across the fleet to 130 grams per kilometre from engine technology by 2012. However Germany did support the overall goal of reducing emissions to 120g/km through the inclusion of biofuels and other measures. /// But looking at the markets across Europe, investors remain shaken over fears over the financial system, doubts about a global central bank plan to thaw credit markets and suddenly renewed worries about inflation. Aside from oil and fuel prices boosting eurozone inflation, U.S. consumer prices jumped 0,8 percent, the sharpest climb in more than two years. U.S. shares trimmed losses felt in early trading in Europe. Investor confidence has not helped by Citigroup's downgrade by a notch to Aa3 by Moody's Investor Service by a notch. It is the latest embarrassment for the largest U.S. bank and puts it under renewed pressure to shore up its shrinking capital base. Stefanie McIntyre, Reuters