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22 June 2006
The elderly are being hit the hardest by inflation, a new study reveals.
Households run by those aged 75 and older were facing an inflation rate that was around 46 per cent higher than the official headline inflation rate in 2004-5, the study from investment trust Alliance Trust found.
Even younger retirees aged 65 to 75 faced a higher rate of inflation than other sections of society, being hit with a rate that was 21 per cent higher than the average in 2004-5.
"In this third year of our study of how inflation affects different age groups, we have found the eldest householders are still the ones who are suffering the highest inflation rate," said Shona Dobbie of Alliance Trust.
"This is because they spend a far higher proportion of their outlays on basic necessities such as food and drink, housing, electricity and gas and these are among the goods that have been rising in price most steeply."
Spending on food and drink accounts for over 18 per cent of the expenditure of over-75s, but only nine per cent of the average spend for a householder in the under-30s group.
Data released by the Consumer Credit Counselling Service recently showed that the over-60s group saw the largest rise in debt levels since 2004 than any other age group, owing on average £33,456.
If you're concerned about inflation and the effect it could have on your credit commitments, order your credit report today and find out where you stand.
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