UK inflation hits 3.5% as borrowing tops forecasts before Healey’s budget

The Office for National Statistics put annual UK inflation at 3.5% in September, up from 3.1% in August, Reuters reports. Government borrowing exceeded forecasts and public debt surpassed £3 trillion ahead of finance minister John Healey’s October 28 budget. Reuters says some household support is expected, though fiscal rules limit his options. Investors and many analysts expect a Bank of England rate increase.