Thursday 17th May 2007
Inflation for those in retirement is nearly half as much again (1.4-times) as the headline figure, the Alliance Trust claims.
Figures published by the trust show that the over-75s now face an inflation rate of about four per cent, compared with the average 2.8 per cent cited by the Bank of England in its consumer price index (CPI).
While this represents a fall of 0.7 percentage points on the statistic for those in retirement in March, the financial services firm expressed concern that the elderly may still face affordability problems.
Shona Dobbie, head of the Alliance Trust Research Centre, said: "Any household which spends a large proportion of its budget on basic goods and services is currently facing a higher rate of inflation than the headline CPI suggests."
The 4.7 per cent rate faced by those in retirement last month set a new record high level of inflation for the course of the trusts four-year study.
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