Higher energy bills drove UK inflation up to 2.9% in the 12 months to July, the latest figures show.

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

The Office for National Statistics (ONS) said the increase to the energy price cap was driven by "the largest rise in gas prices for almost four years".

The July increase 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."