Rising inflation targets young and old
November 15, 2007 by admin
Filed under News, News-Banking
Inflation is rising, and it is hitting the oldest and the youngest hardest. 
In October, inflation rose above the predicted rate of 2.1 per cent – itself above the Bank of England’s 2.0 per cent target – but for over-75s and under-30s, the figure was even higher, at 2.5 per cent.
The breakdown of the impact of inflation on different age groups has been carried out by the Alliance Trust Research Centre.
Younger people have been hit by above-average increases in the price of food, rent and education, while older people have been especially vulnerable to changes in the cost of food, which constitutes a high proportion of their outgoings.
Although energy costs have dropped in recent months, this has been outweighed by rising prices in other areas.
Inflation in food prices this year stands at 5 per cent, while road fuel prices are rising by 12 per cent.
Shona Dobbie, head of the Alliance Trust Research Centre, said: “Throughout the course of our study, which started in 2003, the elderly have consistently suffered the highest levels of inflation. Now they are being matched by the young.
“More than four years of higher-than-average inflation has been eating into pensioners’ budgets and it looks like this situation is going to continue for some time. We are also concerned about the more recent trend of young adults also facing inflation which is significantly higher than the headline rate, largely due to higher rents and education costs, as well as the costs of basic goods.”
