The UK’s inflation rate has risen for the first time this year, official figures show.
It means overall prices rose by 2.2% in the year to July, up from 2% in June, breaching the Bank of England’s target.
However, an increase was widely predicted and is largely due to prices of gas and electricity falling by less than they did a year before.
The Bank expects inflation to rise further this year before falling back again.
Grant Fitzner, chief economist at the Office for National Statistics (ONS), said: “Inflation ticked up a little in July as although domestic energy costs fell, they fell by less than a year ago.
“This was partially offset by hotel costs, which fell in July after strong growth in June.”
Darren Jones, chief secretary to the Treasury, acknowledged many families are still struggling with the cost of living.
“That is why we are taking the tough decisions now to fix the foundations of our economy so we can rebuild Britain and make every part of the country better off.”