Negative inflation from Covid-19 'could see the end of the triple lock'

The firm modelled the likely level of inflation over the coming months based on three economic scenarios - whether the economy is ‘stuck in the doldrums', ‘steady as she goes' or enjoying a ‘bounce back'.   Unless there is a strong recovery in the economy, LCP said CPI inflation could be negative in September, and could even fall below -2%. With prices falling, the government will find it much easier to justify not increasing the state pension by the 2.5% implied by the ‘triple lock' policy.  The triple lock guarantees the basic state pension will rise in line with the lowest of earni...