Double blow to Healey as inflation rises to 3.5% and monthly deficit hits £24bn

UK inflation climbed to 3.5% last month, exceeding economic forecasts as rising fuel costs drove up consumer prices. Meanwhile, the government’s borrowing deficit hit a record £24.5 billion in September, worsening than expected. The latest figures add pressure ahead of next week’s budget announcement. Economists will be closely watching whether these trends signal deeper financial challenges.

Consumer prices rise by more than expected while government’s debt interest payments surge to record high for SeptemberBusiness live – latest updatesInflation surged to 3.5% last month while the government deficit was a worse-than-forecast £24.5bn, in a double dose of bad news for John Healey before next week’s budget.The Office for National Statistics said annual inflation rose from 3.1% in August, overshooting City forecasts of a rise in the consumer prices index (CPI) to 3.4%, as a result of the surging cost of fuel. Continue reading...