THE state pension could see an increase if inflation continues to rise, figures show.

The pension could rise by more than £300 next April if inflation continues to rocket past three per cent.

Data shows the cost of living rose 3.2 per cent last month that would add an extra £5.75 a week to payments of the new state pension.

Although an 8.8 per cent increase was called off by the government's suspension of the triple lock, retirees will still see their incomes rise by the highest out of inflation or 2.5 per cent - whichever is highest, next year.

The government typically uses the September inflation figure to determine how much the state pension must rise by each year – a rate that will be revealed in October.

Experts have predicted that inflation in October will be three per cent but August’s rise indicates that it could be higher, pushing state pension payments past a £300 a year boost.

The Bank of England predicts inflation could even reach four per cent by the end of the year.

The pension will always rise by a minimum of 2.5 per cent under the triple lock, even if it's paused, but if inflation is higher it will rise by that amount instead.

Kate Smith, head of pensions, at Aegon said: "Today’s figures come one month ahead of the all-important inflation figure for September, which will confirm how much the state pension increases by in April.

"With inflation rising steeply in August and expected to continue on this path to the end of the year, state pensioners could see a substantive increase in payments in April, even with the earnings element of the triple lock stripped out."

The current new state pension is £179.60 a week, or around £9,339 a year.