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Inflation still hitting retirees the hardest
17 September 2008 10:30
The cost of living is continuing to increase at a far faster rate for Britain's pensioners than it is for the country's younger inhabitants, according to new figures.
For people aged between 65 and 74, the real rate of inflation rose from 5.8 per cent in July to 6.1 per cent in August, Alliance Trust's index indicated, while for the over-75s, inflation climbed from 6.3 to seven per cent in this time.
Indeed, the increase in the cost of living accelerates with age, as prices were only 4.5 per cent higher for under-30s last month than they were a year previously, with inflation rising to five per cent for 30-to-49 year-olds and to 5.6 per cent for 50-to-64 year-olds.
This is because older Britons expend more on ever costlier staple items, with over-75s spending 16.3 per cent of their income on food, 3.4 per cent on electricity and 3.5 per cent on gas, which have shown annual price rises of 15, 18 and 28 per cent respectively.
The head of Alliance Trust's research centre, Shona Dobie, noted that this age group faces inflation 49 per cent higher than the official rate and warned that the cost of basic goods and services would remain high even after inflationary pressures begin to subside.
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