Inflation for Pensioners runs ten times higher than average rate

The Institute for Fiscal Studies (IFS) has found that using a survey that focuses on a typical basket of goods for those over 60, the IFS has found that inflation for pensioners is running at 5.4 percent in January whilst inflation for the general public has actually fallen to just 0.5 percent.

Home-owner pensioners have not benefited greatly from reduced mortgage payments or lower motoring costs to the same extent as younger households, which has made them more susceptible to inflation.

According to statistics held by age concern 2.5 million pensioners live in poverty prior to the consideration housing costs as food inflation in January stood at 9.9 percent, while household-fuel inflation ran at 35.1 percent.

However there is also a difference in inflation due to age and wealth brackets as pensioners under 70 who are in the top 30 percent in the richest third of households have an average inflation rate of 2.8 percent compared to the poorer third who are over 80 and have an average inflation rate of 7.6 percent.

The director general of Age Concern, Gordon Lishman has said that even the 5 percent increase in pensions is likely to not be enough to counter inflation increases for the over 70 and may result in the most vulnerable people having to make cuts in food or fuel bills.

Story link: Inflation for Pensioners runs ten times higher than average rate