Study shows inflation hits harder
Inflation increased across all age groups throughout November, according to Alliance Trust, even though the official headline rate remained unchanged at 2.1%.
Those aged over 75 and under 30 years old were hit the hardest by inflation last month, the financial services group found. Both age groups have seen their inflation rate increase to 2.6%, which is 24% higher than the official headline rate of 2.1% announced by the Office for National Statistics yesterday.
Rising food prices continue to hit all groups – food price inflation hit a six-month high of 5.1% in November. The under 30’s age group have also been hit by rising rents and education costs, the latter are up by more than 13% over the last year. Temporary declines in gas and electricity price inflation have helped reduce some of the cost pressures facing the elderly, but this group is also being hit by higher food and petrol prices.
Shona Dobbie, head of the Alliance Trust Research Centre, said, “Our study shows the extent to which the impact of inflation can differ from what the government’s headline figure suggests, with big variations across different age groups.
“Since our study began in 2003, the elderly have consistently suffered the highest levels of inflation. Over the past few months, they have been matched by the young. Although the official headline rate of inflation remained unchanged at 2.1% this month, the rate of inflation facing both the elderly and the young has increased, to a much higher level of 2.6%.”