Rolling coverage of the latest economic and financial news
The cost of servicing the UK’s national debt hit a record high for a November last month, helping to push up monthly borrowing to over £14bn.
Debt interest payments last month rose to £7.7bn, the ONS reports in this morning’s public finances (see earlier post).
“High debt interest payments reflect the fiscal implications of swings in the Retail Prices Index (RPI). The latest inflation data released yesterday brings a welcome surprise as headline annual inflation fell faster than expected to 3.9% last month.
Due to lagged index-linked gilts, the fiscal benefits of this fall in inflation rates will be reflected in borrowing figures early next year.
