UK inflation – live: New rate to be announced today as Budget looms

The first half of the year saw the government borrow close to £100bn – and with interest rates still high, that means Rachel Reeves has plenty of money to raise in next month’s Budget.

Budget, debt, interest rates, inflation… These are all interconnected and today we meet another piece of the puzzle.

Rising inflation means interest rates are more likely to remain high, given that the Bank of England is trying to contain it.

But higher rates also mean higher borrowing costs; This means more tax or spending cuts are needed to close the gaps in public finances.

This is why Reeves wants productivity and growth to increase so Treasury revenue also increases and therefore borrowing can be lower. It’s already part of many reasons.

Good morning everyone. The latest UK inflation figures will be released at 7am; We expect another increase to around 4 percent.

This is predicted to be a short-term peak, but it is another reminder of the cost pressures families and businesses face.