OVER 50s EXPERIENCE HIGHER INFLATION THAN THE UK AS A WHOLETuesday 21 May 2013
- Gas price inflation up from 7.6% in March to 8.3% in April
OVER 50s EXPERIENCE HIGHER INFLATION THAN THE UK AS A WHOLE
Inflation on the Consumer Prices Index (CPI) for all ages decreased to 2.4% in April, from 2.8% in March. However it isn’t a positive picture for all. A cold spell in April and the delayed onset of Spring resulted in over 75s seeing inflation some 0.5% higher than the UK as a whole as they’re relatively more affected by rising utility prices.
To compound the issue they also spend proportionately more on fresh food than other age groups and were thus affected by the rise in food & non-alcoholic beverage price inflation which rose from 3.7% in March to 4.6% in April.
Saga’s Index calculates that annual CPI inflation for the over 50s age bands in April 2013 was as follows (March figures in brackets):
- 50-64: 2.4% (2.8%)
- 65-74: 2.2% (2.5%)
- 75 and over: 2.9% (3.1%)
On the Retail Prices Index (RPI), annual inflation stood at 2.9% in April 2013, down from 3.3% in March.
- 50-64: 2.7% (3.2%)
- 65-74: 2.7% (3.1%)
- 75 and over: 2.9% (3.1%)
The cost of living in April 2013, compared to September 2007 - when the financial crisis started to really get underway – has risen substantially more for the over-50s than the overall population, on the broad-based RPI measure of prices. While younger age groups benefitted greatly from falling mortgage interest payments as the Bank of England cut interest rates during the recession, older age groups in general failed to benefit from this. In addition they continue to be disproportionately affected by increases in Gas Price inflation from 7.6% in March to 8.3% in April and increases in food costs.
Compared with September 2007, the cost of living has risen for different age bands as follows:
- 50-64: 22.4%
- 65-74: 25.1%
- 75 and over: 25.7%
- Whole population (RPI): 20.0%
Commenting on the figures, Tim Pethick, Director at Saga said: “The Saga Price Index continues to show that older people are experiencing higher inflation than other age groups. Despite CPI being marginally lower in April compared to March, CPI for those over the age of 50 are experiencing higher inflation than that experienced by the population as whole. Given that there has been such a cold-snap at the beginning of Spring, the cost of this harsh winter could is truly going to be felt long into the summer for many older consumers.
Over the past five years, people over 50 have seen prices increase by more than 25%, it is therefore important that measures are put in place to ensure that the over 50s do not continue to be the ones to bear the brunt with low interest rates and higher than average inflation.”
For further information please contact Lisa Harris on 01303 774716
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