18th September 2013
The headline rate of CPI may have fallen but the over 75s age group faced the highest rate of inflation in August at 3.1% according to Alliance Trust.
They have suffered the highest rate of inflation since the start of the year as they spend a larger share of -their budgets on basics such as gas, electricity and food, where inflation is higher than the headline level. t
Headline inflation has fallen to 2.7%, but his age group spends a larger share of its budget on gas and electricity, where inflation is running above 8%, and on food, where inflation accelerated to 4.7%. These factors have made it the hardest hit group.
However, the younger pensioner age group, the 65-74 year olds, is experiencing the lowest rate of inflation once again, at just 2.4%, helped by the fact that the group spends a lower proportion of its budget on basic goods and more on package holidays, where inflation has slowed once again to just 2.1%, the lowest it has been since March 2012.
Both the 50 to 64 year olds and 65 to 74 year old households saw inflation fall, helped by a combination of lower petrol prices and lower inflation in the clothing category.
The youngest age group, the under 30s, saw its inflation rate rise from 2.7% to 2.8% in August. This age group has had the second highest rate of inflation amongst all age groups since the start of the year, in part due to tuition fees driving education prices up 20%, compared to last year.
Inflation by age groups
30-49 Year Olds
50-64 Year Olds
65-74 Year Olds
75 and Over