UK inflation shot up unexpectedly last month, as vegetable shortages pushed food prices to their highest rate in more than 45 years, according to official figures. The Office for National Statistics (ONS) announced that the Consumer Prices Index (CPI) inflation rose to 10.4 per cent in February from 10.1 per cent in January.
The new inflation figure means that despite a double digit 10.1 per cent Triple Lock increase in April for 12.6million people claiming the State Pension, the uprating will just fail to keep up with rising prices. The Triple Lock determines the level of uprating for the contributory benefit and pays the highest between September’s CPI inflation rate, earnings growth or 2.5 per cent.
Chancellor Jeremy Hunt predicted that inflation might fall to 2.9 per cent by the end of the year, which means if the earnings growth begins to outstrip inflation, the Triple Lock uprating for April 2024, would be based on that.
