The UK's inflation rate rose to 2.9% in the year to July, up from 2.6% the month before

Widely expected by economists, the increase was driven by "the largest rise in gas prices for almost four years", the Office for National Statistics says

Incomes for most - for now - are continuing to outpace prices but if the war in the Middle East drags on, the inflation rate could risk creeping higher," writes our deputy economics editor

Chancellor John Healey says "Iran war inflation continues to impact prices here at home, but Britain's economy is resilient"

The Consumer Prices Index (CPI) inflation measure is based on a sample of everyday items and services - the Bank of England has a target of keeping it at 2%

A reminder: Inflation measures the increase in prices over time. Higher and lower rates refer to the pace of that increase - if the rate drops, it does not mean prices are falling

Jump in energy bills drives inflation to 2.9% - the highest rate for four months