Older and poorer homes 'suffering most from inflation'

11/03/2009

Some of Britain's most vulnerable households are facing high inflation rates, new figures from the IFS suggest.

The ESRC analysed recent price rise data from the Office for National Statistics (ONS), breaking inflation rates down for different social and age groups.

According to the report, there is a general trend towards older and poorer people facing higher price rises.

For example, one ONS inflation measure - the Retail Prices Index - stood at an average of just 0.1 per cent in January 2009.

However, this rate weighs its results towards higher-spending households - and the IFS said that the true average price rise felt by all households that month was 2.1 per cent.

Moreover, the report found that one in four homes - including a relatively high number of older and poorer households - faced inflation of above six per cent.

Sharp price rises for food and fuel, on which these social groups spend a larger proportion of their income, in 2008 were blamed by the IFS for these variations in rates.

Tags; Income Worries and Debt, Retirement Money Problems,

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