Britain’s older generation continue to face the highest rate of inflation, according to figures from the Alliance Trust Economic Research Centre. It found that while all households experienced an inflation increase during July, the over-75s continue to feel the biggest impact from the rising cost of living.
The consumer items affected by inflation tend to account for a larger proportion of the average monthly expenditure for older people, and Alliance noted that while the official inflation rate rose from 2.4 per cent to 2.6 per cent in July, it reached three per cent for the over-75s. Many older people in financial difficulty turn to a quick home sale to downsize their property and ease their financial burden.
Linsey Thomson, senior economic analyst at Alliance, says that older people are more heavily impacted by rises in gas and electricity prices, but there is some hope that things will be slightly less difficult this winter.
She explained: “We expect gas and electricity price inflation to soften later this year, partly due to strong base effects following the gas and electricity price hikes in the autumn of last year. This should provide older households with some much needed relief at last.”