Higher energy bills drove UK inflation up to 2.9% in the year to July, the highest level in four months, according to new figures.
Gas prices soared at the sharpest pace in almost four years, the Office for National Statistics (ONS) said, leading to an increase in the cap on household energy bills in July. Energy costs surged after US-Israel war with Iran began, which has restricted global oil supplies.
July's reading is the highest since March but some price growth slowed. Food inflation, at 1.3%, is at its lowest rate for close to five years.
Experts said the inflation figure is unlikely to influence the Bank of England to change its key interest rate at its next meeting in September.
Energy costs for households rose on 1 July after Ofgem, the energy regulator, increased the price cap on gas and electricity costs by 13%, which added £221 a year to the typical bill.
Homes are forecast to see a 4% rise in energy bills from October, according to Cornwall Insight, which would take them to the highest level since July 2023.
There is ongoing uncertainty over the US-Iran conflict, which has seen effective closures of the Strait of Hormuz, a key trading passage for ships carrying oil, liquefied natural gas and other commodities.
Cornwall Insight, an independent energy consultancy, added that energy price pressures were being compounded by the ongoing heatwave across Europe "increasing gas demand for power generation to meeting air conditioning and cooling demand".
ONS prices director Mike Hardie said furniture prices, which fell by less than usual for that time of year, added to the upward pressure on inflation.
Clothes prices were also a factor, he said, as summer sales discounts were smaller than usual.
Chancellor John Healey said the Iran war was continuing to affect prices in the UK, but insisted Britain's economy was resilient.
"We have cut VAT on electricity bills and capped bus fares at £2 – to give breathing space to those feeling the strain," he said.
"There is more to do to restore hope and build a stronger economy where prosperity is shared more fairly across Britain."
Shadow chancellor Mel Stride said families across the country will be worried by rising inflation.
"Labour's tax rises and business bashing have driven the cost of living higher and higher, yet Andy Burnham refuses to rule out yet more tax hikes at the Budget," he said.
