UK inflation rises to 2.9%

Inflation in the UK rose to 2.9% in the 12 months to July, the latest figures show.

The increase was driven by an increase in gas prices and a lift to the energy price cap, according to the Office for National Statistics (ONS).

Energy costs rose on 1 July after regulator Ofgem's 13% increase in the price cap on household gas and electricity bills, adding £221 a year to the typical household's bill.

The uptick is the highest rate of inflation since March, when it was 3.3%.

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, and said clothing was also not being discounted as much.

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."