Interest on British government borrowing surged to a December record last month due to rocketing inflation, according to official figures. The Office for National Statistics (ONS) said interest payments on government debt trebled to a higher-than-expected £8.1 billion last month, up from £2.7 billion in December 2020 and the highest for any December on record. It came as UK inflation has raced to levels not seen for three decades due to soaring energy and fuel prices and as a result of supply chain problems. The ONS said the jump in UK debt interest payments is down to the recent surge in the Retail Prices Index (RPI) measure of inflation, which determines payouts on index-linked gilts. RPI rose to its highest level since March 1991, hitting 7.5 percent last month, up from 7.1 percent in November. The ONS data showed that the rising interest payments came despite borrowing falling year on …
Interest on UK Government Borrowing Jumps to December Record Amid Soaring Inflation
January 25, 2022
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