But as we have seen, one important part of our pension system—defined-benefit plans—has been in relative decline. This relative decline represents a transfer of return risk and longevity risk to individuals, who are less able to bear or manage them.
It turned negative in August and fell further, to –0.3%, in September, dampened by weak demand and the previous collapse in oil prices, but also by temporary factors. Our projections foresee headline inflation remaining negative into early next year, and coming in at 0.3% on average in 2020.