Alliance Trust: Falling inflation benefits pass pensioners by

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Alliance Trust: Falling inflation benefits pass pensioners by

Wed 17th Dec 2008

Alliance Trust have conducted research which shows that the fall in inflation, announced by the Office of National Statistics yesterday, benefits pensioners less than the rest of the population.

According to the pensions provider, high food and fuel costs leave pensioners struggling with a rate of inflation that is 63 per cent higher than the rate affecting the general population.

While the headline rate of inflation fell from 4.5 per cent to 4.1 per cent between October and November, Alliance Trust found that the rate of inflation for pensioners is still 6.7 per cent.

Shona Dobbie, head of the Alliance Trust Research Centre, said: "This high level of inflation is worrying for elderly consumers especially now that we have entered the winter months as high gas, electricity and food prices leave elderly households with less money to spend elsewhere."

Skipton Building Society recently published a survey which showed the credit crunch had seen a higher proportion of pensioners cutting back on spending than the figure for the general population.

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