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

India to Brief Envoys on Operation Sindoor

Sources confirmed that the session will cover a wide array of developments, including the destruction of Chinese and Turkish-made drones and PL-15 missiles…reports Asian Lite News India will brief Defence Attachés from

India Strikes Back on U.S. Tariffs

India, in its notification to the WTO, announced its intent to suspend concessions and other obligations in response to the US safeguard measures..reports Asian Lite News India has notified the World Trade

Starmer Pushes for Stricter Immigration

The British PM made it clear that government is increasing the skill thresholds for migrant workers, raising the degree level required, and tightening the English language requirements….reports Asian Lite News British Prime

Trump Targets Drug Prices

Trump said drugmakers would have to lower their US prices to the level paid by other developed countries, or could face investigation..reports Asian Lite News U.S. President Donald Trump signed an executive

Albanese Cabinet Takes Oath Again

The Cabinet and outer ministry is largely unchanged from the end of Albanese’s first term, with the vast majority of senior leadership figures continuing in their roles…reports Asian Lite News Australian Prime
Go toTop

Don't Miss

Inflation, pandemic hit common man in Pakistan

With the increase in cost of petrol, electricity units, transport,

Sweden’s inflation hits highest in 30 yrs

Electricity prices have increased by 54.2 per cent, and food