THE UK’s rate of inflation remained at 2.2% in August meaning the state pension will rise by £460 for millions next year.
The Office for National Statistics (ONS) said the Consumer Price Index (CPI) measure stayed stayed at 2.2% in the 12 months to August.
The Consumer Price Index measure of inflation stayed the same in August[/caption]
It comes after inflation rose by 2.2% in the 12 months to July.
The latest figures confirm that the state pension will rise next year by £460 under the triple lock mechanism.
The system sees the state pension rise in line with whatever is highest out of: wages for May to July, 2.5% or the previous September’s inflation figures.
Grant Fitzner, chief economist at the ONS, said inflation held steady in the 12 months to August due to various goods going up and down in price.
He said air fares showed a large monthly rise, in particular due to travel to European countries.
Meanwhile, fuel prices fell as well as prices at restaurants and hotels which offset the rise in air fares.
He added: “Also, the prices of shop-bought alcohol fell slightly this month, but rose at the same time last year.
“Following two months of growth, raw material prices fell, driven by lower crude oil prices, while the increase in the cost of goods leaving factories slowed again.”
