Inflation facing elderly drops, but still high at 3.9%Latest figures from the Alliance Trust Research Centre show the benefits of falling inflation are coming through more slowly for older people and their inflation rate remains far higher than that facing younger people. Alliance Trust’s monthly study of age-related inflation revealed a drop in the inflation rate facing the over 75s to 3.9% in April, compared to 4.6% in March. The over 75s inflation rate was still 70% higher than the official headline rate of 2.3%.
The gap between the inflation rates facing the young and old widened, with the elderly facing an inflation rate 77% higher than under 30 year olds. Inflation rates across all age groups are lower than at this time last year as they benefit from reductions in gas, electricity, petrol and food price inflation, but the elderly are benefitting less than others because the cost of basic goods and services remains high. Shona Dobbie, Head of the Alliance Trust Research Centre, said, "Although it is good to see the inflationary pressures facing the elderly begin to recede, the actual rate of inflation facing this age group remains uncomfortably high, at 3.9%. This is much higher than the official rate of inflation, and much higher than the inflation rate facing any of the other age groups. The benefits of falling prices are coming through more slowly for the elderly. This is a particular problem at the moment as it is older people, who frequently rely on income from savings, who are also suffering the negative impact of very low interest rates.”
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