Eat out to help out scheme pulls UK inflation down to 0.2% – business live

Rolling coverage of the latest economic and financial news, as UK inflation falls to its lowest level since 2015

10.08am BST

The OECD is also urging governments to resist hiking taxes or cutting spending to address the huge borrowing run up during the pandemic.

My colleague Phillip Inman explains:

Governments must resist imposing spending cuts and hefty tax rises before their economies have recovered from the effects of coronavirus lockdowns, a leading global thinktank has warned.

In its quarterly health check of the global economy, the Organisation for Economic Co-operation and Development (OECD) said it would be necessary to continue borrowing extra funds into next year to support the worst-hit households and businesses despite concerns about mounting public sector debts.

Related: Governments should avoid Covid spending cuts and tax rises, says OECD

10.07am BST

Newsflash: The global economy is recovering faster from the Covid-19 pandemic than feared, according to the Organisation for Economic Co-operation and Development.

The Paris-based group has hiked its economic forecasts, noting that China and the United States are in better shape than it thought three months ago.

The drop in global output in 2020 is smaller than expected, though still unprecedented in recent history….

Output picked up swiftly following the easing of confinement measures and the initial re-opening of businesses, but the pace of the global recovery has lost some momentum over the summer months

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Source: theguardian
Eat out to help out scheme pulls UK inflation down to 0.2% – business live