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LATEST FIGURES SHOW INFLATION RATE FACING THE ELDERLY HAS SURGED TO 4.1%

Alliance Trust’s independent study of age related inflation has found that inflation surged in April and hit the over 75 year olds the hardest – this age group now faces an inflation rate of 4.1%. Inflation rates facing all other identified age groups have also increased and the majority are running ahead of the official headline rate of inflation of 3.0%.

Food price inflation has increased by more than 7% over the last year, utility prices have increased by over 8% and petrol prices have risen by 19% in the same period. These price increases have a major impact on the inflation rate facing the elderly as a significant proportion of their household income is spent on these items. In contrast, younger generations tend to spend a higher proportion of their incomes on clothing, footwear and audio-visual goods, where prices continue to fall, helping them to escape the worst of the current inflationary pressures.

These findings confirm that the elevated level of inflation facing the older age groups remains in place, and is worsening, driven by recent price increases for food and fuel. Alliance Trust Research Centre predicts that inflationary pressures will remain strong in the coming months for basic goods and services.

Inflation rate facing the over 75 year olds now 37% higher than the official rate of inflation.

Under 30s age group faced the lowest level of inflation in April at 3.0%, similar to the official headline rate.

Food prices have risen by more than 7% over the last year, electricity prices have jumped by more than 8%, and petrol prices are up almost 19%.

Alliance Trust Research Centre warns that inflation could rise even further over the next few months, reflecting further pressure on prices for both food and fuel.


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