Older people 'still face' high inflation

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Older people 'still face' high inflation

Wed 18th Jul 2007

Inflationary pressures faced by older consumers have dropped in June but still remain higher than levels faced by other demographics, research from the Alliance Trust shows.

The group's monthly age and inflation alert shows that the rate of inflation experienced by people over 75 declined in June from 3.4 per cent to 3.1 per cent.

Despite the drop, inflation for this age group is still running at 29 per cent higher than the headline inflation rate of 2.4 per cent, as this group is believed to allocate a high proportion of their spending on basic necessities.

Shona Dobbie, head of the Alliance Trust Research Centre, said: "The impact of higher prices for basic goods and services, such as heating and food, almost always falls most heavily on the elderly and those on low incomes, as these households spend a larger proportion of their budgets on these necessities."

Ms Dobbie also identified how older people have had to budget their spending to pay for goods and services which have experienced a high change in cost have left them little spending power to buy discretionary goods.

Alliance Trust's study shows that the under-30s still face the second highest level of inflation, despite it dropping from 2.8 per cent to 2.7 per cent in June.

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