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Eldery 'worst hit in inflation'

Elderly people are the worst affected by the rise in food and energy costs, according to one expert.

In an assessment of the effects of the ongoing economic slowdown on different age groups, the Alliance Trust has found that the older generation is feeling the pressure more than any other age range.

'Age-related inflation' is said to have hit people in the over-75s band hardest in March this year, as they face an inflation rate of 3.4 per cent, the organisation calculates.

The rate of inflation affects older people more since a larger proportion of their income is spent on food, utility bills and petrol, which have seen inflationary increases of six per cent, four per cent and 20 per cent respectively.

Shona Dobbie, head of the Alliance Trust Research Centre, comments: "The over-75s are once again the most exposed to the negative impact of high food and energy costs.

"Price inflation for some food groups, such as dairy products, is currently running above 15 per cent. This impacts the elderly who spend a higher proportion of their budgets on basic food items."

The financial services company recently commented on the economic volatility experienced in the UK, claiming that it expects the market to remain this way, "swung around by emotions of fear and greed".

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© Adfero Ltd

16/04/2008 13:29:26

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