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30-64 Year Olds Hardest Hit By Inflation

  • Latest figures from Alliance Trust Research Centre show that inflation rates facing all age groups rose sharply over the month. In particular the inflation rate facing the 50-64 year olds jumped from 1.9% to 2.8% in November, matching the inflation rate faced by the 30-49 year olds
  • The two working age groups, the 30-49 year olds and 50-64 year olds, face a rate of inflation, at 2.8%, which is 47% higher than the official rate
  • For the second consecutive month, the over 75s face the lowest rate of inflation, at 2.3%. This age group also bore the smallest increase in inflation during the month of November, helped by the fact that gas and electricity prices were unchanged.
  • All five age groups face rates of inflation which are in excess of the official headline rate of 1.9%
  • During the month, petrol prices rose 2.8%, food prices gained 1.0%, clothing prices gained 0.9% but both gas and electricity prices were unchanged.

    • This month's official inflation report showed that the headline rate of inflation rose from 1.5% to 1.9% in November. Alliance Trust's monthly study of inflation rates facing different age groups reveals that each group continues to face a rate of inflation considerably higher than the official rate, and that these have increased further this month. For the second consecutive month the 30-49 year olds face the highest rate of inflation, at 2.8%, and this month they are joined by the second working age group, the 50-64 year olds. This is 47% higher than the official rate, and can be explained by high inflation in transport costs, education fees and second hand cars. For the second consecutive month, the over 75s are facing the lowest rate of inflation, at 2.3%.

    Utility price inflation remains negative this month, at -6.7%, whilst electricity price and gas price inflation were constant at -8.2% and -5.9% respectively. The negative rate of inflation in both of these categories helps the over 75 year olds in particular, as it is this age group which spends the highest proportion of their budgets on these services. The elderly spend more than 7% of their budget on electricity and gas bills; whereas the under 30 year olds spend just over 3% on these services.

    The youngest age group continues to benefit from a combination of factors, including ongoing deflation in prices for both clothing and audio-visual goods. Both categories saw price increases over the month, but this still leaves prices down over the year, by 7% in the case of clothing and by close to 8% in the case of audio-visual goods.

    Transport and education costs are currently hitting the working age groups hardest. Transport costs have risen by almost 7% over the last year, and education costs by more than 5%. In addition, the price of second hand cars is important to 30-49 year olds, and this has jumped by almost 16% over the last year

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    Date: 15th, December, 2009

    Author: Charmaine L. Horan


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