How can that be? Well this is the time of year that the figure is used to set the annual increases for some pensioners and disability benefits, as well as public service pensions and the state second pension.
Inflation as measured by the Consumer Prices Index fell to -0.1% in September, this was due to a smaller than usual rise in clothing prices, and falling motor fuel prices. The CPI rate has been at or close to zero for most of this year. It was last in negative territory in April.
Most benefits will be frozen from April because of the latest data.
The law does not allow for a down rating of benefits, so the practical effect is that benefits are likely to be frozen from April. The exact change, or lack of it, will be approved by the government in the coming weeks.
What this means for you is that pensioners here and in the UK could soon be facing a squeeze on living standards
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
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