- Consumer Price Index (CPI) annual inflation was 1.9% in January, just down from 2.0% in December 2013.
- Retail Price Index (RPI) annual inflation stood at 2.8% in January, just up on 2.7% in December 2013.
- The largest downward contribution to the CPI inflation rate came from recreational goods & services, furniture & household goods and alcoholic beverages & tobacco.
- Given that expenditure patterns vary across households, experienced inflation rates will differ across age-bands. We calculate that annual consumer price index (CPI) inflation was as follows for the over 50s age bands in January 2014 (December 2013 figures in brackets):
50-64: 1.8% (1.9%)
65-74: 1.7% (1.8%)
75 and over: 2.1% (2.2%)
- We calculate that annual retail price index (RPI) inflation was as follows for the over 50s age bands in January 2014 (December 2013 figures in brackets):
50-64: 2.4% (2.4%)
65-74: 2.4% (2.4%)
75 and over: 2.4% (2.4%)
Figures 1 and 2 illustrate the annual rates of inflation for the over-50s. Annual CPI-based inflation is lower for 50-64 and 65-74 age brackets than for the UK population as a whole. The rate of inflation faced by the over-75s fell from 2.2% for December 2013 to 2.1% in January, in part driven by falling utility prices which make up a relatively large proportion of expenditure for this age group. For example the annual rate of inflation for gas fell to 6.7% in January from 7.8% one month earlier.
Saga's flash inflation index contains full report and graphs