UK May budget deficit comes in at 14 bln stg
Reuters poll had pointed to 12 bln stg
Debt interest costs accelerate as inflation rises
Sunak says data represent challenge

LONDON, June 23 Reuters Surging debt interest costs triggered by the leap in inflation forced the British government to borrow more than expected in May at 14 billion pounds 17.14 billion, according to official data published on Thursday.

Economists polled by Reuters had a median forecast of 12.0 billion pounds for borrowing excluding public sector banks.

Finance minister Rishi Sunak remains under pressure to borrow more after he added 15 billion pounds last month to his support for households hit by the costofliving crisis, even as a slowing economy threatens to reduce tax revenues.

He repeated his warning of the hit to the public finances from rising inflation after the data from the Office for National Statistics.

Rising inflation and increasing debt interest costs pose a challenge for the public finances, as they do for family budgets, Sunak said.

The government39;s interest bill rose by 70 from May last year to 7.6 billion pounds, the biggest ever interest cost for the month of May and the third highest for any month.

Britain39;s official budget watchdog has said it expects interest costs in June to reach almost 20 billion pounds due to the accelerating inflation rate.

British inflationlinked government bonds are pegged to the Retail Price Index which hit almost 12 in May.

Borrowing in…