British pensioners will be a bit better off next year after the Government announced an increase in the basic state pension.
It will go up from £113.10 a week to £115.95 next year, an increase of nearly £150 a year.
At the same time, food prices have been falling faster than any time since 2002. The drop of 1.4% this year was due to the price war among major retailers.
Prime Minister Cameron said the state pension increase had resulted from the "triple lock" introduced by the Coalition.
In 2010, the Government said it would ensure the state pension rose each year by inflation earnings or 2.5% – whichever was higher.
"Today, the inflation figure has come out and it's a good and low figure, which we're all pleased about. [So] we're almost certain that the state pension will go up by 2.5%."
Office for National Statistics figures showed inflation on the consumer prices index was 1.2 % in the year to September. Inflation was subdued in part because of lower food prices.
Food prices are likely to remain suppressed as the world enjoyed a good harvest this year.
Mr Cameron said that since 2010 the state pension had risen by £440 more than had it been linked just to earnings. This had provided "stability and security" for the elderly, he said.
