The latest figures leave inflation above the Bank of England's 2% target.
UK inflation rose to 2.9% in July, driven largely by higher household energy costs, according to the latest figures from the Office for National Statistics
The rise means inflation is now at its highest level since March, although food price inflation slowed to 1.3%, its lowest rate in almost five years.
Gas prices recorded their sharpest annual increase in almost four years.
The rise contributed to Ofgem increasing its household energy price cap by 13% from July 1.
The change added around £221 a year to the typical household energy bill.
Energy prices are expected to remain a concern for households.
Cornwall Insight forecasts that bills could rise by another 4% in October.
The consultancy said continuing uncertainty around the conflict involving the US, Israel and Iran could place further pressure on global energy markets.
The Strait of Hormuz has also faced disruption, affecting a major trading route for oil, liquefied natural gas and other commodities.
Cornwall Insight said Europe’s ongoing heatwave was adding to gas demand.
More gas is being used for power generation as demand for air conditioning and cooling increases.
ONS prices director Mike Hardie said furniture and clothing prices also contributed to the monthly increase.
Furniture prices fell less than they normally do at this time of year, while clothing discounts were lower than usual.
Despite higher energy costs, there was some positive news for shoppers.
Food inflation slowed during July, with prices for pasta, olive oil and fresh fruit falling.
British Retail Consortium lead economist Harvir Dhillon said strong competition between supermarkets was helping to limit increases in weekly food shopping costs.
Motor fuel inflation also eased, falling to 15.5% in July from 21.3% in June. However, prices remained considerably higher than the previous year.
The latest figures leave inflation above the Bank of England’s 2% target.
Economists do not expect the July increase to trigger a change in interest rates at the Bank’s next meeting in September.
KPMG chief economist Yael Selfin said energy costs could push inflation higher in the coming months.
She expects inflation could reach around 3.5% before gradually falling.
Capital Economics chief economist Ruth Gregory said inflation could return to the Bank’s 2% target by the end of next year if energy prices remain under control.
However, the higher cost of essentials continues to place pressure on household budgets.
Suren Thiru, chief economist at the Institute of Chartered Accountants in England and Wales, warned that rising inflation could become a major threat to UK economic growth.
He said higher prices could squeeze household finances by increasing the cost of essential goods and services.
The impact is already being felt by community organisations supporting families facing financial pressure.
Penny Keevil, founder of Second Chance Medway, said her discounted food pantry is increasingly being used by working people as well as those receiving benefits.
She said demand for affordable food now extends across different parts of the community, while energy bills remain too high for many households.
Chancellor John Healey said the Government was taking steps to ease pressure on households, including reducing VAT on electricity bills and maintaining a £2 bus fare cap.
He said more work was needed to strengthen the economy and ensure prosperity was shared more fairly.
Shadow Chancellor Mel Stride criticised the Government’s economic management.
He argued that Britain was not sufficiently prepared for global economic shocks and claimed households were being left to deal with the consequences.
With energy bills expected to rise again in October, household finances are likely to remain under pressure as inflation continues to exceed the Bank of England’s target.
