
Inflation hit 3.9 percent for the elderly last month - 70 percent above CPI.
Debt concerns for Britain's oldest people have been raised with the release of a new report from Alliance Trust.
The study showed that Britain's over-75s were facing price rises equivalent to 3.9 percent a year in April. This contrasts with the latest inflation figures from the government released earlier in the week, which found that the Consumer Price Index (CPI) stood at just 2.3 percent.
Older people have been harder hit by the recent high inflation rates because they tend to spend a larger proportion of their income on food and fuel - goods which have experienced particularly sharp price increases over the past year. As most over-75s do not earn a salary outside of their pension and savings income, many could feel impelled to take out credit in order to make ends meet - thereby leaving them vulnerable to falling into debt.
Commenting, Shona Dobbie, head of the Alliance Trust Research Centre, said: "Although it is good to see the inflationary pressures facing the elderly begin to recede, the actual rate of inflation facing this age group remains uncomfortably high."
She added: "This is much higher than the official rate of inflation and much higher than the inflation rate facing any of the other age groups. The benefits of falling prices are coming through more slowly for the elderly."
The CPI hit a 16-year high of 5.2 percent in September 2008 and has been consistently registering month-on-month falls since. The Bank of England recently predicted that a general slowdown in demand for goods and services, caused by the recession, would result in the index bottoming out at 0.5 percent towards the end of the year.


