Inflation In England Forced The Treasury To Borrow

Inflation in England forced the treasury to borrow. The country made £8.7 billion in interest payments in June.

UK inflation hit the public finances last month, pushing interest payments on government debt to record levels. The treasury paid £8.7 billion ($11.8 billion) in interest in June, the highest in any month since records began in 1997, the Office for National Statistics said on Wednesday. The £6bn increase compared to last year was due to higher retail price inflation pushing up the index-linked cost of services. The figures show the pressure on Finance Minister Rishi Sunak, who has pushed government borrowing to a peacetime record. According to the data of the British Office of National Statistics (ONS), the consumer price index in the country increased by 2.5 percent in June, exceeding the expectation of 2.2 percent. In the UK, the CPI was 2.1 percent in May. In the approximately $2.8 trillion British economy, while the coronavirus (Covid-19) restrictions are completely ended as of today, methods are sought to reduce the high inflation.