Inflation hits 5.2 per cent

The annual rate of inflation rose to 5.2 per cent in September, according to figures released today.

It rose from 4.7 per cent in August, having been 4.4 per cent in July.

But because the percentage rise in the cost of living for September will be used to calculate benefits and state pensions for next year, a rise followed by a fall in future months could mean some good news for pensioners.

The Basic State Pension is currently uprated each April in line with the previous September's RPI inflation rate, or by 2.5 per cent, whichever is greater.