Alliance Trust: Elderly's inflation is over 6%

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Alliance Trust: Elderly's inflation is over 6%

Wed 13th Aug 2008

People over 75 are the hardest hit by rising inflation, according to research by Alliance Trust.

Inflation among costs for the elderly rose from 5.4 per cent to 6.3 per cent in July, the highest of all age groups.

Only those under 30 have inflation below five per cent, at 4.4 per cent.

Inflation increases with the age of the demographic, with those aged 30 to 49 facing a five per cent rate and those aged 50 to 64 having a rate of 5.4 per cent.

For the 65 to 74 age group, it is 5.8 per cent.

According to the research, the over 75s spend almost seven per cent of their budget on gas and electricity, a figure which is just three per cent in the under 30s.

Shona Dobbie, head of the Alliance Trust Research Centre, said: "We are currently seeing the highest levels of inflation in the history of our six-year study."

Personal finance website Moneyfacts says that inflation in the UK is eroding savings.

Noting that the average rate on no notice savings accounts ranges from 3.3 per cent to 4.14 per cent before tax, it said that inflation is "also depreciating the original capital invested".