Official consumer prices index (CPI) inflation is expected to dip this week when official figures are released.
The total deficit of private sector UK defined benefit (DB) schemes increased by £100bn last month as rising inflation expectations pushed up liabilities, figures show.
The UK's headline inflation rate fell back to 2.8% in July, matching analysts' expectations, the latest data has revealed.
Fixed income managers have cautioned the Bank of England (BoE) will be forced to backtrack on its forward guidance measures as it has been too pessimistic over the state of the UK economy.
UK CPI inflation rose from 2.7% to 2.9% in June, with the largest upward contributions coming from petrol, clothing and footwear.