UK Government Debt Costs Jump by Nearly 40 Percent Amid Soaring Inflation
Interest payments on UK government debt has jumped by almost 40 percent year-on-year as state borrowing increases at a much faster pace than expected, official data show.
According to the latest figures from the Office for National Statistics (ONS), UK government borrowing hit £4.9 billion ($5.8 billion) in July, significantly exceeding the £2.8 billion predicted by economists and bringing the total budget deficit for the year so far to £55 billion ($65 billion).
Government debt interest payments climbed to £5.8 billion ($6.9 billion) in July, up from £3.5 billion in the same month last year due to increases in Retail Price Index (RPI) inflation.
Earlier this week, the ONS revealed that RPI had risen to 12.3 percent, while the broader Consumer Price Index (CPI) inflation figure hit a new 40-year high of 10.1 percent….