Working age groups face rate of inflation of more than 4%

This month’s official inflation report showed that the headline rate of inflation rose from 1.9% to 2.9% in December. Alliance Trust’s monthly study of inflation rates facing different age groups reveals that each group continues to face a rate of inflation considerably higher than the official rate, and that these have increased even further this month. The 50-64 year old age group now face the highest rate of inflation, at 4.1%, followed very closely by the 30-49 year old age group, whose current inflation rate is 4.0%. The 50-64 year old group is facing a rate of inflation which is 41% higher than the official rate, due largely to the fact that this group spends relatively more on transport, where inflation is currently high, at almost 9%. In particular, fuel price inflation is currently running at more than 18%. For the third consecutive month, the over 75s are facing the lowest rate of inflation, at 3.3%, helped by the fact that this group spends relatively more on food and utilities, where inflationary pressures remain contained.

Shona Dobbie, Head of the Alliance Trust R esearch Centre, said, "As expected, inflationary trends have increased sharply this month, reflecting the anniversary of the VAT cut in December 2008, higher fuel costs and the fact that the recent depreciation of sterling is pushing up the cost of imported goods. These price moves are currently having the greatest impact on the two working age groups, who spend a larger proportion of their budgets on the goods and services which are seeing high price increases. The fact that the working age groups now face an inflation rate of more than 4%, but average earnings have grown by only 1.5% over the last year, highlights the sharp erosion of purchasing power which is taking place at this time."

View the full Press Release here.

___________________________________________________________________

Alliance Trust - Interim Results for the six months ended 31 July 2009

Alliance Trust has announced its interim results of the six months ending 31 July 2009. Over the last six months, the Company has reiterated its focus on investment in equities by reducing cash and increasing core equities exposure to 89% of net assets, adhering to its long term conviction-based investment approach. Other highlights were that Alliance Trust Increased exposure to the UK, US and Asia; increased Net Asset Value by 6.8%; and achieved total shareholder return of 8.8%. For the half-year period, it ranked 36th of 44 Global Growth and Global Growth and Income Investment Trusts for total shareholder return

View the full news story here.

Alliance Trust PLC appoints executive director

Alliance Trust PLC today announces that it has appointed Robert Burgess (aged 44) to the Board as an executive director with immediate effect. Robert Burgess joined Alliance Trust as Managing Director of its wholly-owned subsidiary, Alliance Trust Savings, in February 2009. He will become Chief Executive of that business and will continue to lead its development.

Before joining Alliance Trust, Robert Burgess held senior banking roles within the Lloyds TSB group, managing the retail and business banking sectors as an executive director of Lloyds TSB Scotland and subsequently as regional director for its retail banking business in London and the South East.

View the full news story here.