August 19, 2022
1 min read

Inflation fuels jump in govt debt costs

Earlier this week, the ONS revealed that RPI leapt to 12.3 per cent, while the broader Consumer Price Index (CPI) inflation figure hit a new 40-year-high of 10.1 per cent…reports Asian Lite News

Interest payments on government debt jumped by almost 40 per cent last month as rocketing inflation continues to add to state borrowing, according to official data.

The Office for National Statistics (ONS) said Government borrowing hit 4.9 billion pounds in July.

It is significantly ahead of the predictions of analysts, who had forecast 2.8 billion pounds in borrowing last month.

Nevertheless, borrowing was 0.8 billion pounds below levels from the same month last year, but represented a 5.9 billion pounds surge from pre-pandemic levels in 2019, when the government reported a surplus of 0.9 billion pounds.

It came as debt interest payments climbed to 5.8 billion pounds in July, lifting from 3.5 billion pounds in the same month last year due to increases in Retail Price Index (RPI) inflation.

Earlier this week, the ONS revealed that RPI leapt to 12.3 per cent, while the broader Consumer Price Index (CPI) inflation figure hit a new 40-year-high of 10.1 per cent.

In response, Chancellor Nadhim Zahawi said: “I know that rising inflation is creating challenges for families and businesses, and it is also putting pressure on the public finances by pushing up the amount we spend on debt interest.

“To help people during this difficult time, Government support is continuing to arrive in the weeks and months ahead, targeted to those who need it most, like pensioners, people on low incomes, and those with disabilities.

“We are taking a balanced approach: safeguarding the public finances while providing significant help for households.”

Government spending increased by 3.4 billion pounds to 76.5 billion pounds in July compared with the same month year, the ONS added.

ALSO READ-Inflation hits double digits for first time since 1982

Previous Story

US Senator Ossoff to lead eight-day delegation to India

Next Story

Sunak may head to US if he loses PM race

Latest from -Top News

Kabila returns to Congo from exile 

Kabila, who left Congo in 2023, came to Goma “to participate in peace efforts” in the conflict-hit east where Rwanda-backed M23 rebels have seized large swaths of territory  Former Congolese President Joseph

India, Tanzania discuss strengthening bilateral ties 

Tanzania and India have traditionally enjoyed close, friendly, and cooperative relations. From the 1960s to the 1980s, the political relationship was characterised by shared commitments to anticolonialism, non-alignment   India’s External Affairs

INS Sunayna arrives in Mozambique 

 The port call marks a significant milestone, enhancing maritime cooperation and interoperability between the Indian and Mozambique Navies   The Indian Navy’s INS Sunayna, currently deployed as part of the Indian Ocean
Go toTop

Don't Miss

New NZ PM sets out priorities, ‘Bread-and-butter’ issues top list

Hipkins was sworn in as New Zealand prime minister on

India set to turn the tables on Oppn over price rise, inflation

Despite all the difficulties and global problems, the rate of