Inflation 'hitting the old hardest'

[OpenMind]

http://www.telegraph.co.uk/news/main.jh ... w_16082006





Inflation 'hitting the old hardest'

By Edmund Conway, Economics Editor

(Filed: 16/08/2006)

The cost of living for pensioners is rising more than 50 per cent faster than the official inflation rate, experts claimed yesterday.

The news comes as the integrity of the Government's official inflation figures continues to be questioned. The Office for National Statistics said that the Consumer Price Index fell from 2.5 per cent to 2.4 per cent in July - despite record increases in gas bills.

According to Alliance Trust, the investment group, inflation for over-75s was 3.7 per cent, while for those between 65 and 75 it was 3 per cent.



Experts believe the elderly are not benefiting as much as younger generations because they are less likely to buy electronic and fashion items, whose prices have plunged thanks to cheap imports.

Shona Dobbie, the head of the Alliance Trust Research Centre, said: "With the cost of gas and electricity on the up, the impact of these rises will affect the elderly more than the average population."

© Copyright of Telegraph Group Limited 2006.