Elderly face ‘increased inflation costs’

Older people continue to face a higher than average rate of inflation, a study reveals.

According to findings conducted by the Alliance Trust Research Centre, the over-75s faced an inflation rate some 56 per cent higher than the headline rate during 2006.

Head of Alliance Trust Shona Dobbie claimed "the eldest householders are still the ones who are suffering the highest inflation rate".

She said: "This is because they spend a far higher proportion of their outlays on basic necessities such as food and drink, housing, electricity and gas and these are among the goods that have been rising in price most steeply."

As a result, the study indicated that older people may have debt management problems and struggle to make secured personal loan repayments.

Last month, the Alliance Trust revealed low-income families with an annual income of less than £7,000 face inflation rates which are a third higher than government figures.

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