15 December 2009
30-64
YEA
·
Latest figures from
·
The two working age groups, the 30-49 year olds and
50-64 year olds, face a rate of inflation, at 2.8%, which is 47% higher than
the official rate
·
For the second consecutive
month, the over 75s face the lowest rate of inflation, at 2.3%. This age group
also bore the smallest increase in inflation during the month of November,
helped by the fact that gas and electricity prices were unchanged
·
All five age groups face rates of inflation which are
in excess of the official headline rate of 1.9%
·
During the month, petrol prices rose 2.8%, food prices
gained 1.0%, clothing prices gained 0.9% but both gas and electricity prices were unchanged
This month’s official inflation report
showed that the headline rate of inflation rose from 1.5% to 1.9% in November. 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 further this month. For the second consecutive
month the 30-49 year olds face the highest rate of inflation, at 2.8%, and this
month they are joined by the second working age group, the 50-64 year olds. This
is 47% higher than the official rate, and can be explained by high inflation in
transport costs, education fees and second hand cars. For the second
consecutive month, the over 75s are facing the lowest rate of inflation, at
2.3%.
Shona Dobbie, Head of the
|
Age Group |
Inflation Rate |
|
Under 30 |
2.5% |
|
30-49 Year Olds |
2.8% |
|
50-64 Year Olds |
2.8% |
|
65-74 Year Olds |
2.6% |
|
75 and Over |
2.3% |
Utility price inflation remains negative
this month, at -6.7%, whilst electricity price and gas price inflation were
constant at -8.2% and -5.9% respectively. The
negative rate of inflation in both of these categories helps the over 75 year
olds in particular, as it is this age group which spends the highest proportion
of their budgets on these services. The elderly spend more than 7% of their
budget on electricity and gas bills; whereas the under
30 year olds spend just over 3% on these services.
The youngest age group continues to benefit
from a combination of factors, including ongoing deflation in prices for both
clothing and audio-visual goods. Both categories saw price increases over the
month, but this still leaves prices down over the year, by 7% in the case of
clothing and by close to 8% in the case of audio-visual goods.
Transport and education costs are currently
hitting the working age groups hardest. Transport costs have risen by almost 7%
over the last year, and education costs by more than 5%. In addition, the price
of second hand cars is important to 30-49 year olds, and this has jumped by almost
16% over the last year.
Spending
Weights
|
Age Group |
Food |
Electricity |
Gas |
Petrol |
Clothing/ Footwear |
|
Under 30 |
9.0% |
1.8% |
1.5% |
4.3% |
5.9% |
|
30-49 Year Olds |
10.9% |
2.0% |
1.8% |
5.0% |
6.3% |
|
50-64 Year Olds |
11.6% |
2.2% |
2.0% |
5.2% |
5.7% |
|
65-74 Year Olds |
14.4% |
2.7% |
2.5% |
4.6% |
4.7% |
|
75 and Over |
16.4% |
3.7% |
3.5% |
3.2% |
3.9% |
Note: This table shows the spending
patterns of different age groups across different spending categories
You can obtain a copy
of the report by emailing contact@alliancetrust.co.uk or phoning
08000 326323.
|
Contacts |
|
|
|
Clare Dundas/ |
|
Finsbury Group |
|
Tel: +44
(0)20 7251 3801 |
|
Email: alliancetrust@finsbury.com |
|
Web:
www.finsbury.com |
Notes to editors
1.
Alliance Trust PLC is a
self-managed investment company with investment trust status. A FTSE-100
company, it is the largest generalist
2.
The
3.
Photographs of Shona Dobbie are available on request.
4.
Inflation and age chart is shown below.
Inflation and Age (January 2007 to November 2009)
Source: In-house