New figures released by the Office for National Statistics (ONS) show that Consumer Prices Index (CPI) inflation reached 10.1% in September, compared with 9.9% in August. This matches the 40-year high inflation hit in July and remains well above the UK Government’s target of 2%.
The September reading is important for the Treasury as the figure is commonly used as the benchmark to raise benefits and the State Pension for the following April, however, Chancellor Jeremy Hunt would not commit to the Triple Lock. But, during PMQs in the House of Commons on Wednesday, Prime Minister Liz Truss did confirm the UK Government's commitment and said: "We are protecting the Triple Lock on pensions”.
The September inflation figure is one key component of the State Pension Triple Lock formula. The Triple Lock guarantees that State Pensions grow in line with whichever is highest out of earnings, inflation or 2.5% and was introduced to help give pensioners a decent minimum level of income which would keep pace with growth in workers' earnings.
