Debt advice news: Inflation rates are higher for workers

16/12/2009

Rising inflation is hitting older Britons harder, according to new analysis from the Alliance Trust Research Centre.

The organisation compared true inflation rates faced by different age groups in November 2009, in a report based on yesterday's government figures showing a rise in the Consumer Prices Index from 1.5 to 1.9 per cent last month.

According to Alliance Trust, Britain's 30 to 49-year-olds and 50 to 64-year-olds faced inflation of 2.8 per cent in November.

This sharp increase was explained by the fact that older workers typically spend a higher proportion of their incomes on the goods and services which have seen particularly steep price increases recently.

The report also suggested that actual price rises were sharper for all age groups than suggested by the official figures.

Financial burdens caused by high inflation rates can lead to money problems necessitating debt advice.

Shona Dobbie, head of the Alliance Trust Research Centre, said: "As expected, inflationary trends have increased quite sharply this month, reflecting recent increases in petrol and food prices."

Kevin Still, EuroDebt director, added: "Rising costs and pay freezes don’t bode well for older people struggling with their finances. The recession has been protracted and most households in financial difficulty have already made significant cut backs in their household budgets.

"Many homeowners are reliant on interest rates remaining low just to balance the books, especially after Christmas. EuroDebt traditionally sees a rise in debt advice enquiries in late January when the credit card bills come in."

The Alliance Trust Research Centre said that under-30s and over-75s faced the lowest inflation rates in November, at 2.5 per cent and 2.3 per cent respectively.

Tags; Housing Debt and Bills, Young Family Finances,

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