Elderly benefit from inflation trends

18/11/2009

Recent falls in gas and electricity prices mean that Britain's over-75s are facing the lowest inflation rates across all age groups, the Alliance Trust Research Centre has found.

The report also found that working Britons aged between 30 and 49 years old are facing a tighter squeeze than before.

Alliance Trust Research Centre used official inflation figures released yesterday (November 17th) to highlight how price trends affect those of different ages.

According to the government data, the Consumer Prices Index rose from 1.1 per cent in September to 1.5 per cent in October, the first rise in inflation for eight months.

The report said that inflation for 30 to 49-year-olds rose from 1.4 per cent to two per cent, while the rate for over-75s fell to 1.7 per cent.

Alliance Trust Research Centre also pointed out that, during October, gas prices fell by 0.2 per cent and electricity by 0.4 per cent.

Food prices rose by one per cent and education costs by 3.3 per cent.

The varying inflation rates between age groups are partly explained by the fact that elderly Britons spend a higher proportion of their incomes on energy, while 30 to 49-year-olds are more likely to have school-age children.

Shona Dobbie, head of the Alliance Trust Research Centre, said: "As expected, inflationary trends have increased once again this month and it now appears to be the 30-49 year olds who are being hit hardest.

"The elderly are temporarily benefiting from the drop in gas and electricity prices."

Tags; Current UK Economy, Retirement Money Problems,

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