The UK issues more inflation-linked debt than anyone else
High inflation will raise interest payments on these of bonds by a third to £92 bln over the next 5 years, on top of the £89 bln extra for the last 2 years (3.4% of GDP). The UK has 25% of debt linked to inflation, Italy is second with 12%. The reason is demand by UK pension schemes eager to buy assets that match their inflation-linkedin payments.

21 November 2023

Financial Times