Old notions of high inflation 'won't help reduce British debt levels'

Government debt now more sensitive to changes in interest rates and prices, budget watchdog says

Britain in June had the highest rate of consumer price inflation among major advanced economies, at 8.7%.

High inflation will not help Britain's public finances in the same way as in the past because government debt is now more sensitive to changes in interest rates and prices, the chair of the UK's Office for Budget Responsibility has said.

Richard Hughes told the BBC that old notions of being able to inflate away high levels of public debt no longer applied.