0918 GMT - U.K. public finances are expected to come under strain due to effects of the Middle East war, Quilter's Lindsay James says in a note. The latest public finances data show borrowing in February was 14.3 billion pounds ($19.2 billion), higher than the consensus forecast by economists in a Wall Street Journal poll for borrowing of 9.3 billion pounds. High energy costs due to the U.S.-Iran conflict raise the risk of elevated inflation which add to inflation-linked government expenses, James says. "With U.K. growth already challenged, such a scenario of higher inflation and weaker growth playing out would be a really bad place to be given the level of inflation-linked costs." (miriam.mukuru@wsj.com)
(END) Dow Jones Newswires
March 20, 2026 05:18 ET (09:18 GMT)
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