Money News
12th August 2008
Inflation hits over-75s hardest
Britons over-75s are suffering the most as a result of soaring inflation, according to the Alliance Trust.
The firm claims that although inflation is officially running at 4.4 per cent, the over-75s are facing a rate of around 6.3 per cent.
Alliance Trust claims that this is because pensioners are on a fixed income and because they spend almost seven per cent of their budget on electricity and gas bills, compared with just three per cent for under-30s households.
Also, hitting pensioners hard are food price rises, with over-75s paying out over a third more of their income on food than households with occupants under 30.
Shona Dobbie, head of the Alliance Trust Research Centre, said: "Food price inflation is now at 14 per cent, with some basic foods, such as bread and cereals, meat and dairy products, all displaying price increases of 16 per cent or more over the past year.
"Over 75s are facing a rate of inflation 43 per cent higher than the official rate of inflation, which is currently 4.4 per cent, mainly due to rising utilities and food costs which have soared over the past year."
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