Economic Indicators, Budget update

Recent data show unemployment rose to its highest level since 1994 in the three months to January and CPI inflation increased to 4.4% in February (compared with average earnings growth of 2.3%). Meanwhile, public finance statistics show that for the first 11 months of fiscal year 2010/11 the government borrowed nearly 10% less than in the same period of 2009/10. As a result, full-year borrowing in 2010/11 is likely to be less than the OBR’s November forecast of £149 billion. For more information see the Library’s background briefing to the Budget. Following the Budget an additional Library briefing will be available