Consumers Of All Ages ‘See Rise In Inflation’
Britons are witnessing a rise in financial pressures, a new set of figures has shown.
In research carried out by the Alliance Trust Research Centre, consumers from all age groups saw an increase in inflation over the course of September. Despite the official rate remaining at 1.8 per cent, a surge in monetary strain may well see more people struggle to meet demands for payment in numerous areas of their spending such as utility bills, loans and rent costs. And although rates of gas and electricity inflation continued to fall during the month, food prices have surged by four per cent with this growth intimated as being driven by hikes in the cost of basic products such as milk, butter and vegetables.
Overall, the over-75s were shown to be privy to the highest rate of inflation, as they face rises of 2.2 per cent - about a fifth higher than headline figures. Meanwhile, the under-30s are revealed as having the second-highest inflation costs as a result of increased rent and education costs - the latter of which has risen by some 14 per cent over the past 12 months. However, those between the ages of 65 and 74 could also be coming under furthered pressure to make secured personal loan repayments as they have seen the largest increase in inflation over the course of September.
Commenting on the data, Shona Dobbie, head of the Alliance Trust Research Centre, said: “Our study continues to highlight the extent to which inflation hits different age groups. Throughout the entire course of our four-year study, the elderly have consistently suffered the highest levels of inflation. Although the official headline rate of inflation remained unchanged at 1.8 per cent this month, our study shows that the rate of inflation facing the elderly has increased to a much higher rate of inflation of 2.2 per cent.
“More than four years of higher-than-average inflation has eaten into pensioners’ budgets and left them struggling to pay higher bills. We are also becoming concerned about the more recent trend of young adults also facing inflation which is significantly higher than the headline rate, largely due to higher rents and education costs, as well as the costs of basic goods.”
She added that the research centre “would not be surprised” if inflationary pressures begin to rise in the future. Ms Dobbie pointed out that as oil prices have reached a record high, subsequently petrol and transport costs could also be set to increase. Meanwhile, the flooding witnessed in Britain and the heat-wave experienced on the continent in recent months was purported to have an impact on food production levels, as prices are set to rise. It was suggested that such a move could have the “biggest impact” on the over-75s who spend a large proportion of their budget on such basic goods, which in turn could impinge upon their ability to make loan repayments.
Consequently, those concerned about their capacity to manage their finances over the coming months may wish to consider taking out a debt consolidation loan. By opting for such a loan, borrowers could find themselves with more disposable income at the end of each month as numerous debts are merged into one single low-rate monthly repayment. And with research conducted by Combined Insurance revealing that 56 per cent of adults faced a negative spending surprise in 2006, a number of consumers were shown to be on a financial “edge” as experiencing such an event may see them develop difficulties in other spending areas, for instance home loans and utility bills.
Online Loan Arrangers providing you with breaking debt consolidation loans news.