Alliance Trust: Elderly inflation reaches 7%

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Alliance Trust: Elderly inflation reaches 7%

Thu 18th Sep 2008

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

The investment and financial services group found that the under-30s are the only age group to face inflation lower than the official rate.

For those over 75, the figure has gone from 6.3 per cent to seven per cent.

Gas prices have increased by almost 28 per cent over the last year and electricity by 18 per cent, Alliance Trust reports.

Since those over 75 spend almost seven per cent of their budget on such bills, they are hit harder than those under 30 for whom it comprises just three per cent.

Since the elderly also allocate 16 per cent of their budget to food, compared to less than nine per cent for the under-30s, they have also suffered from the ongoing rise in food prices.

Age Concern recently criticised the government's energy help plans, saying they did not go far enough to help the poorest pensioners.

It said funding needed to increase by at least 25 per cent and the limit for the maximum grant available also had to go higher.

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