UK consumer borrowing rose by £2.46 billion in a month, its biggest increase in records dating back to 1993, as households use credit to manage rising costs. The figures point to mounting pressure on household finances, though some economists say borrowing could also reflect confidence that conditions will improve.

Credit card lending rose by £1.18 billion, the fastest increase since 2004. A PwC survey found that 35 per cent of workers could afford savings or other extras after essential bills, down from 45 per cent a year earlier, while 59 per cent felt strained at work because of the cost squeeze. The article says higher energy, fuel and food costs could push inflation above 4 per cent by early next year, potentially prompting four interest rate rises by the end of next year.