Over 75s inflation down 22%

Pensioners over 75 saw a sharp drop in inflation last month, new figures show.

Statistics released by the Alliance Trust Research Centre reveal that inflation for people in this age bracket dropped from 3.6% in May to 2.8% in June.

This is the lowest rate of inflation experienced by over 75s since January 2008, although it is still 56% higher than the official rate of inflation.

The official inflation rate currently stands at 1.8%.

People over the age of 75 spend a higher proportion of their income on food and energy bills, the Alliance Trust said, the two areas where inflation is most acute.

“The benefits of falling prices continue to come through more slowly for the elderly, who spend a larger share of their budgets on the basic goods and services; where price falls have been more limited,” said Shona Dobbie, head of the Alliance Trust Research Centre.

Earlier this year Moneyfacts.co.uk published research showing the current low interest rate hits elderly people the hardest as many rely on their savings for a regular income.

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