Statistics Jersey says the increase is "slightly lower" than the long-term annual average.
Experts have warned that he and Chancellor John Healey will have little room to manoeuvre in their first Budget.
Lord O'Neill, former chief economist at Goldman Sachs, was tipped to become Andy Burnham's chief economic adviser.
Twenty-somethings are much less likely to own a home than previous generations. But data suggests things may be improving.
A 2.9% rise in inflation had been widely expected by economists, with Chancellor John Healey saying the Iran war “continues to impact prices here at home”.
Rising living costs could heap pressure on PM Andy Burnham though it depends what happens in the coming months.
The interest rate set by the Bank of England affects mortgage, loan and savings rates for millions.
UK inflation dropped slightly in June 2026, but higher energy costs are expected to push it back up.
Small firms cite labour and operating costs as reasons for scaling back hiring, the UK's statistics body says.
