'Elderly inflation' remains high

19/08/2009

New inflation trends might mean that older people in the UK face stretching budgets, the Alliance Trust Research Centre has warned.

Official figures released yesterday showed that the Consumer Prices Index - the main inflation benchmark - stayed at 1.8 per cent in July, the same level measured in June.

City analysts had expected the figure to fall, meaning that annual price rises have become less steep.

Alliance Trust also pointed out that this could be bad news for older people - who are more affected by price rises as a higher proportion of their income goes on items such as energy and food.

The researchers said that the inflation rate among Britain's over-75s was at 2.8 per cent in July - and at 2.3 per cent for 65 to 74-year-olds.

Shona Dobbie, head of the Alliance Trust Research Centre, said: "It is disappointing to see that inflationary pressures facing the elderly have not receded this month. Recent declines in overall inflation have stalled and the inflation rates facing the two retirement age groups remain persistently higher than for any of the other age groups.

"The benefits of falling prices are still coming through more slowly for the elderly, who spend a larger share of their budgets on basic goods and services."

Tags; Income Worries and Debt, Retirement Money Problems,

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