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UPDATE 2- Gilts push euro zone bonds yields higher in "continental updrift"

* UK Gilts push most euro zone bond yields higher by 1-3 bps

* Euro zone inflation gauge inches higher as oil price spikes

* Euro zone periphery govt bond yields http://tmsnrt.rs/2ii2Bqr (Changes throughout, adds new information, quotes, and numbers)

LONDON, Dec 12 (Reuters) - Borrowing costs across the euro zone were pushed higher on Tuesday by a jump in UK Gilt yields after British inflation topped market expectations.

Consumer prices in Britain unexpectedly rose to its highest level in nearly six years in November.

UK 10-year bond yields rose 2 basis points to 1.22 percent after the news, pulling euro zone yields off their recent lows.

The debt of the world's major economies often move instep with each other as many investors switch between them, and bond yields in general rise with inflation.

"Yields in Europe are being pushed higher by Gilts, which have sold off a touch after the inflation data earlier today, a sort of continental updrift from across the Channel if you will," said Rabobank strategist Richard MacGuire.

"It is important to remember though that the overall trend has been lower yields. Even Gilts actually rallied quite strongly yesterday."

Most euro-zone bond yields were 1-3 basis points higher by midday trading.

Germany's benchmark 10-year yield was up 2 basis points at 0.31 percent.

The Bank of England raised interest rates for the first time in a decade last month to counter rising inflation. Investors are watching for signals from the central bank, which will meet on Thursday, about how soon rates will rise again.

High inflation usually pushes yields higher as investors factor in a higher possibility of a rate hike. In fact, a key gauge of euro zone long term inflation, the five-year five-year forward, also edged higher on Tuesday to within touching distance of 1.70 percent.

Oil prices may also be putting pressure on yields, with the price of Brent crude rising above $65 a barrel for the first time since 2015.

Portugal had outperformed the rest of the market in early trade on Tuesday with its 10-year bond yield close to its lowest level since April 2015 ahead of a potential restoration of its investment grade status by Fitch.

However, the impact from British bonds caused the yield on Portugal's 10-year government bond to inch back to 1.83 percent, up 5 basis points on the day.

It had previously dropped to 1.785 percent earlier in the day, just a shade off the 2-1/2 year low of 1.78 percent hit on Monday.

Belgium announced on Tuesday it will issue its first green bond in 2018.

For Reuters Live Markets blog on European and UK stock markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.bi z / c m s / ? p a g e I d = l i v e m a r k e t s

(Reporting by Fanny Potkin and Abhinav Ramnarayan; Editing by Angus MacSwan)