Pensioners feel the pain of rising inflation

Sunday, 20 July 2008

A recent study by Alliance Trust reveals pensioners are the hardest hit by surging food prices and rising inflation.

For those over 75 inflation has spiked to 5.4%, an increase of 0.6% in one month and 42% higher than the official inflation rate of 3.8%.

The cause of the rise is mainly driven by the sharp increase in basic goods prices, and the over 75s are particularly worse off due to the increased cost of food, which has risen by almost 11 per cent in the past 12 months.

Shona Dobbie, Head of the Alliance Trust Research Centre said, "Our study continues to highlight the extent to which inflationary pressures are hitting the elderly. The over 75s in particular are hit by rising food and utility prices. Food prices are now rising at almost 11%, with basic goods such as dairy prices rising at a rate of over 19%. This effects the elderly in particular, with these households spending a higher proportion of their budgets on the more basic food items."

"Utility prices continue to rise, with gas price inflation currently running at over 10% and electricity price inflation running at more than 11%. On top of this, petrol price inflation, at 24% is hitting everyone hard."

The study by Alliance Trust confirms that elevated inflation levels facing older age groups is deteriorating and will remain strong in the coming months for basic goods and services.

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