The UK government borrows to fund day-to-day spending as well as long-term infrastructure projects.
The economic figures released on Wednesday show the constraints for John Healey as he puts the finishing touches to his Budget.
Inflation accelerated to 3.5% from 3.1% in the year to September, according to the Office for National Statistics (ONS).
UK inflation rose in September, pushed up by higher petrol and diesel prices.
Speaking ahead of next week's Budget, the Conservative leader says her party would make £70bn of cuts.
Small firms cite labour costs as a key factor in scaling back hiring, the Office for National Statistics says.
Chancellor John Healey will set out his plans for UK taxes on 28 October.
More property asking prices are being cut than at any time in 15 years, data shared with the BBC shows.
At the IMF meeting in Bangkok this week finance and business leaders grappled with uncertainty.
