combined impact reduces cpi inflation by nearly three quarters of a percent this year, lowering inflation when it is particularly high. i now turn to the prime minister s second priority, which is to reduce debt. here too our plan is on track. underlying debt is forecast to be 92.4% of gdp next year, then a 97.3%, 94.6%, 94.8%, before falling to 94.6% in 27 28. we are meeting the debt priority. with are meeting the debt priority. with a buffer of £6.5 billion, it means we are meeting ourfiscal a buffer of £6.5 billion, it means we are meeting our fiscal rule to have debt falling as a percentage of gdp by the fifth year of the forecast. as a proportion of gdp, our debt remains lower than the usa, canada, france, italy and japan. and because of the decisions i take today, and the improved outlook for
public finances, underlying debt in five years time is now forecast to be nearly three percentage points of gdp lower than it was in the autumn. that means more money for our public services and a lower burden for the future generations. deeply held conservative values, which we put into practice today. at the autumn statement, i also announced that public sector net borrowing must be below 3% of gdp over the same period. the obr confirmed today we are meeting that rule with a buffer of 39.2 billion. in fact, our deficit falls on every single year of the forecast, with borrowing falling from 5.1%, down to 3.2%, down to 2.2%, and 1.7% in 27 28. even better, in the final two years of the forecast from our current budget is in surplus, meaning that