UK annual CPI inflation rose to 3.5% in September, exceeding forecasts as motor fuel costs increased, while the government’s monthly deficit reached £24.5bn. Debt interest payments hit a September record of £10.9bn, and financial-year borrowing exceeded the Office for Budget Responsibility’s expectations despite falling from a year earlier. The article links these pressures to higher energy costs following the war on Iran. Economists forecast further inflation pressure and a likely November interest-rate increase, while warning about risks to economic activity.
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