|Elderly still face highest rate of inflation
This month’s official inflation report showed that the headline rate of inflation fell from 2.2% to 2.1%. Alliance Trust’s monthly study of inflation rates affecting different age groups found that four out of five age groups saw their inflation rate fall over the month. However, it is still the over 75s who face the highest rate of inflation, at 2.2%, despite a fall from 2.5%. This age group has been hit the hardest because it spends a larger share of its budget on household energy. Gas price inflation is running at 6.3% and electricity inflation at 6.7%. Gas and electricity price inflation eased in November, despite the much publicised price hikes and this is because prices were also increased in November 2012 which affected the year on year rate of growth.
It is now the 65 to 74 year olds who are experiencing the lowest rate of inflation, at 1.6%, the lowest level for this age group since September 2009. The fall in November was due to a combination of lower inflation in food, petrol and package holidays. For example, food price inflation fell from 4.3% to 3% in November and this is an area of relatively large expenditure for this age group.
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