Higher inflation hits all age groups
October’s increased inflation rate is hitting all age groups at above the official rate, according to Alliance Trust, an investment and financial services group.
The official rate of inflation rose to 2.1% in October from 1.8%, breaching the Government’s target rate of 2%. A study by Alliance Trust also found inflation for all age groups is now above the official rate for the first time since last June.
Over 75-year olds and under 30-year olds have been hit hardest, according to the study. Both age groups are subject to inflation at 2.5 per cent, which is 19 per cent higher than the official headline rate.
Shona Dobbie, head of the Alliance Trust Research Centre, said: “Our study continues to highlight the extent to which the real effect of inflation differs from what the government’s headline figure suggests, and varies across different age groups.
“Inflation pressures are starting to rise again. The oil price has recently moved to a new record level and this is already pushing petrol and transport costs higher. Food price inflation has been a concern in recent months and we suspect that there could be more to come. This is likely to have the biggest impact on the inflation rate facing the over 75s since this age group spends a much higher proportion of their household budgets on basic items such as food.”