The high price of necessities such as power and food, has caused inflation for the over 75s to rise to 36% above the headline rate of 2.5%.
During May, inflation declined among all age groups as gas prices fell by 3% and electricity prices fell by 1%.
However, research from the Alliance Trust shows that older people are experiencing inflation of 3.4%. Inflation is also high amongst younger age groups with those aged under 30 facing the second highest rate of inflation.
Those aged over 75 are feeling the effects of inflations more as food price inflation is high at 4.9% despite falling from 6%.
Alliance Trust has called for pensions to be linked to the rise in the cost of living for retired people, as the Consumer Prices Index (CPI) does not properly reflect the spending patterns of older people.
The CPI currently gives food and beverage costs a 10% weighting when calculating the rate of inflation; however, the typical retired person spends nearly 17% of their income on these products.
The under 30s also tend to spend more of their household income on basic goods and services, such as gas and food, and rents have increased by 14% over the past year which has caused high inflation for this age group.
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