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[British Prime Minister Emphasizes Fiscal Discipline as Pre-Budget Pressure Rises] ⑴ British Prime Minister Burnham stated that he is prepared to make the difficult decisions needed to keep the UK economy on track, following Wednesday's data showing rising inflation and increasing speculation about the impact of the October 28th budget. ⑵ The UK is considered more vulnerable than other countries to the impact of the Middle East wars on oil prices, and the rising inflation makes the Chancellor's position more difficult, as his budget options are limited by weak public finances and rising borrowing costs. ⑶ Burnham said that the August inflation rate of 3.1%, a five-month high, was worrying, but the government will take action to help the public while remaining prudent in managing the economy. ⑷ He told reporters that difficult decisions will be made to ensure the economy stays on track, and that the latest data reflects a resilient economy. ⑸ This week, UK government borrowing costs rose to their highest level in decades as escalating Gulf conflict fueled inflation concerns, and global bond yields generally climbed. ⑹ On Tuesday, the 30-year UK gilt yield hit its highest level since 1998, and on Monday, the 10-year yield rose to its highest level since 2007. (7) Burnham emphasized his readiness to make tough choices to balance the books, following criticism from a former Bank of England official who suggested the market doubted the current government's traditional role as a socialist government focused on taxation and spending, only better at it in short videos. (8) Burnham denied this, stating he had made difficult decisions in his position and was not incapable of doing so. (9) With high inflation, rising borrowing costs, and the approaching budget, the market is scrutinizing the UK's fiscal path more closely, with subsequent budget details and the direction of UK bond yields becoming key areas of focus.