Inflation could cause debt problems

20/01/2010

Debt problems may be a particular worry for pensioners following the release of the latest inflation figures.

A rise in inflation could bring about debt problems for many older people on low incomes, according to a charity for older people.

Age Concern stated that people on pensions could be "dreading the bounce back of inflation" which will be a particularly hard hit as they are "already bracing for a round of post-freeze energy bills".

Andrew Harrop, head of policy at Age Concern and Help the Aged, said: "While the basic state pension is due to increase by 2.5 per cent, other elements of the state pension including the additional pension are due to be frozen at current levels."

He added: "We urge the government to reconsider this decision."

The Office for National Statistics reported the annual rate of consumer price inflation (CPI) in December 2009 at 2.9 per cent, an increase of a full per cent on the previous month.

This is the highest jump in inflation since official records began.

Tags; Retirement Money Problems,

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