UK Inflation Rate Rises, Government Debt Highest Since 1960

 UK inflation rates rose from a five-year low in September above market expectations, with transport and restaurants being the main contributors to this increase.

Data published by the Office for National Statistics (ONS) showed the consumer price index (CPI) rose 0.5% in September from 0.2% recorded the previous month, and was better than expected for a 0.4% increase.

Meanwhile, the core inflation rate (excluding energy and food prices) was reported to increase by 1.3%.

Despite the increase, with the resurgence of coronavirus cases leading to new sanctions being implemented, the UK is expected to face deeper pressures as well as being pressured by the risk of a Brexit no-deal.

Meanwhile, British government borrowing was reported higher in September, with new figures showing that public sector net loans reached £ 36.1 billion.

UK public loans are expected to reach a record £ 372 billion this financial year, according to an August forecast from the Office for Budget Responsibility, equivalent to 18.9% of gross domestic product (GDP), the highest since World War II.

Figures published today also show that government debt rose higher to £ 2,060 trillion or 103.5% of GDP, the highest since 1960.