You are here: Home - Uncategorized -

Headline inflation remains stable

Written by:

Alliance Trust has found that the inflation rates facing all five of its identified age groups remained unchanged over the month, despite higher food and fuel prices.

Inflation continues to hit the over 75s and the under 30s hardest – these two groups have the highest inflation rate at 2.6%.

Alliance Trust’s age-related inflation study has been updated using official price data for December. The official rate of headline inflation remained unchanged at 2.1% during the month, and its study shows that all five of its identified age groups have also seen no change to their inflation rate over the month.

However, all five of its identified age groups are facing a rate of inflation which is higher than the official headline. This is particularly severe for the oldest and youngest age groups. Both the over 75s and the under 30s continue to face an inflation rate of 2.6%, which is 24% higher than the official headline rate.

Although temporary declines in gas and electricity price inflation have helped to reduce some of the energy cost pressures facing the elderly, this group continues to be hit particularly hard by higher food and petrol prices. Food price inflation is now at an eight-month high of close to 6%, driven by high price growth for basic products, such as milk, butter, cereals, bread and vegetables.

Shona Dobbie, head of the Alliance Trust Research Centre, said: “Our study continues to highlight the extent to which the impact of inflation can differ from the official headline figure.

“In particular, we repeatedly identify big variations in the inflation rates applying across different age groups, reflecting the different spending patterns of each group. Since our study began in 2003, the elderly have consistently suffered the highest levels of inflation.

“Although the official headline rate of inflation remained unchanged this month, inflationary pressures are still strong for many basic goods which we all have to buy on a regular basis. This makes inflation feel much higher than the official level, and leaves less money left over to spend on the more discretionary items, such as clothing and audio-visual goods where prices continue to fall.”


Related Posts


Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • Given the Brexit uncertainty, you may be looking to protect your pounds ahead of your next holiday. Here are five w…
  • If you are concerned you may miss the 31 January HMRC deadline to file your tax return, here are five excuses that…
  • Millions of Lloyds, Halifax and Bank of Scotland customers unable to make and receive payments in latest bank IT me…
  • RT @YourMoneyUK: Millions of Lloyds, Halifax and Bank of Scotland customers unable to make and receive payments in latest bank IT meltdown…
  • RT @YourMoneyUK: Millions of Lloyds, Halifax and Bank of Scotland customers unable to make and receive payments in latest bank IT meltdown…
  • Make sure you're not paying more than you need to for your #energy. Check when your fixed deal ends and pop a note…

Read previous post:
Opportunities remain for US equity investors

Despite some degree of economic deterioration, there are still exciting opportunities to be found in US equities.