Rate of inflation gap between young and old 'beginning to close'

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Rate of inflation gap between young and old 'beginning to close'

Tue 19th May 2009

The gap between the rate of inflation for old and younger generations has closed slightly in recent times, new research has indicated.

Inflation rates faced by the elderly have fallen dramatically to 3.9 per cent from 4.6 per cent in April, according to the Alliance Trust Research Centre's monthly report.

However, older generations are still facing a significantly higher rate than those of younger generations - specifically when it comes to utilities such as petrol, gas and electricity.

Head of the Alliance Trust Research Centre Shona Dobbie explained that 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," she continued.

Last month, research released by Moneyfacts.co.uk revealed that the currently low rate of interest is hitting elderly people hardest in the UK due to their reliance upon savings and pensions.

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