U.K. Government Borrowing Jumps as Inflation Boosts Debt Costs
- Net Borrowing 6.9 billion pounds in June, higher than forecast
- Inflation pushes up cost of servicing index-linked gilts
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Britain had a larger-than-expected budget deficit last month as rising inflation pushed up debt payments.
Net borrowing was 6.9 billion pounds ($9 billion), up from 4.8 billion pounds in June 2016 and above the 4.9 billion pounds predicted by economists. It left the shortfall in the first three months of the fiscal year at 22.8 billion pounds, up 9 percent on the year.