Alliance Trust: Inflation rate is higher for pensioners

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Alliance Trust: Inflation rate is higher for pensioners

Wed 18th Feb 2009

The Alliance Trust has published a study which reveals that the inflation rate faced by pensioners is higher than the rate for the rest of the population.

Official figures recently stated that the rate of inflation in the UK is three per cent, but Alliance Trust calculates that those over the age of 75 are currently dealing with an effective rate of 5.4 per cent.

High costs for fuel and food are to blame for the extra inflation pensioners face, as they spend a larger proportion of their incomes on these essentials than the general population does.

Shona Dobbie, head of the Alliance Trust Research Centre, said: "Younger age groups are benefiting most from the current downturn in inflation, as they spend relatively more on audio visual products and clothing and footwear, where prices are falling quickly.

"The elderly are not seeing the same benefits of falling prices as the young."

Recently, the charity Age Concern called on the government to target some of its economic stimulus measures specifically at pensioners, as the downturn is hitting them particularly hard.

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