- For the first time in our six-year study, the youngest age group is facing the highest rate of inflation, at 1.5%. This is due to a combination of factors, including the higher costs of clothing, eating out and second hand cars.
- Our three working age groups all face a similar rate of inflation, of 1.4%, helped by the decline in fuel prices, which have dropped 6.6% over the year.
- During the month, food prices also fell, by 0.9%, while gas and electricity prices remained unchanged. However, clothing prices rose 4.0% over the month and education costs increased by 1.8%, both of which impact the youngest age group.
This month’s official inflation report showed that the headline rate of inflation fell from 1.6% to 1.1% in September. Alliance Trust’s monthly study of inflation rates facing different age groups reveals that each group faces a rate of inflation higher than the official rate, but that these have fallen sharply this month. In addition, retired households no longer face the greatest price pressures. For the first time in the history of our study, it is the youngest age group which is facing the highest rate of inflation, at 1.5%. This is 36% higher than the official rate, and 7% higher than the inflation rate being faced by the over 75s. The sharp decline in the inflation rate facing the elderly is due to falling prices for both utilities and food.
Shona Dobbie, Head of the Alliance Trust Research Centre, said, "It is very encouraging to see that inflationary pressures facing the elderly have receded, and that, for this month, this age group now actually faces the lowest rate of inflation. However, we are wary that the sharp drops which we have seen in both utilities and food prices may prove to be temporary and that the elderly may enjoy only a brief respite before their inflation rate begins to rise again.
No comments yet.