PENSIONERS over 75 still
have to face an inflation rate of 6.7 per cent. This despite
the recent falls in average inflation in the UK. The rate of
inflation supposedly dropped to 4.1 per cent in November
from previous month's figure of 4.5 per cent. It was higher
in September (2008) at 5.2 per cent. However, for pensioners
over 75, the rate of fall was the smallest for all age
groups. 6.7 per cent for those aged 75 or over and 5.2 per
cent for those between 65 and 74, according to figures by
the Alliance Trust Research Centre.
Younger age groups - those
under 49 continue to enjoy an effective inflation rate which
is lower than the official level, at 3.7 per cent.
The higher rate for
pensioners is because they typically need to spend more of
their income on energy and food. Gas and electricity costs –
on which over 75's spend 7 per cent of their budget – have
risen by 50 and 30 per cent respectively over the last year,
while food prices, which account for 16 per cent of the
average over 75's budget, are 12 per cent up.
