UK inflation pressures hits three-year high; Nobel prize for economics awarded today – business live

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Source: The Guardian Business · NewTimes editorial text based on the source feed.

Rolling coverage of the latest economic and financial news The surge in inflation following the start of the Iran war has taken a bite out of the UK’s spending plans, the Institute for Fiscal Studies (IFS) is warning this morning.

The IFS has calculated that chancellor John Healey is facing a funding gap of up to £35bn, as rising inflation has eroded the value of government departments’ cash budgets, and also driven up government borrowing costs.