The older generation may be most likely to suffer debt problems due to the economic slowdown, according to figures released by the Alliance Trust this week.
People over 75 are experiencing an inflation rate of 6.3 per cent, compared with the official rate of 4.4 per cent – which is also the rate experienced by those under 30.
This is due to older people spending more of their household budget on household fuel bills (seven per cent) and food (16 per cent) than other age groups. The cost of both these basic necessities has increased recently.
Shona Dobbie, head of the Alliance Trust Research Centre, said people over 75 were experiencing a rate of inflation 43 per cent above the official rate.
"This current battle with inflation is particularly worrying for consumers as it is being driven by higher prices for basic goods and services," she added.
Earlier this month Legal & General said people should arrange pensions as soon as they can to reduce the amount they pay overall.
