However, The Firm Reports That In Actuality Britons From All Age Groups Are Suffering Inflation Higher Than Headline Figures

Category: Finance, Personal Finance.

Consumers of all ages are facing a rise in financial difficulties, new figures indicate.

However, the firm reports that in actuality Britons from all age groups are suffering inflation higher than headline figures. According to data published by the Alliance Trust, the official rate of inflation increased higher than expected to stand at 1 per cent over the course of October. The first time this has happened since June 2007, such a rise in living costs could well see the majority of Britons struggle to meet demands for payment on utility bills, personal loans and, rent other areas of financial constraint. During the month, food inflation went up by 1 per cent- the highest figure noted for six months. The centre asserted that the rise in the nation s financial difficulties was a result of a surge in food and oil prices over the course of October. In particular such increases are said to impact upon elderly people the most, as vegetable and bread rises have gone up by eight and five per cent respectively. Meanwhile, fuel price inflation stands at more than 12 per cent, a rate which could affect motorists ability to meet other demands on their spending, MOT or repayments, such as tax on the personal loan they may have taken out to fund the purchase of their vehicle in the first place.

Meanwhile, dairy products and, oils fats all rose by over 11 per cent. The news comes despite falls in levels of electricity and gas inflation. The oil price has recently moved to a new record level and this is already pushing petrol and transport costs higher. Commenting on the figures, head of the, Shona Dobbie Alliance Trust Research Centre, said: "Inflation pressures are starting to rise again. Food price inflation has been a concern in recent months and we suspect that there could be more to come. And with such difficulties set" to continue for some time" , these people may well discover that they are evermore struggling to make payments on utility bills, personal loans and other demands on their spending.

This is likely to have the biggest impact on the inflation rate facing the over- 75s since this age group spends a much higher proportion of their household budgets on basic items such as food. " She added that throughout the course of Alliance Trust s research older people" have consistently suffered the highest levels of inflation" . However, now young consumers are facing an equal amount of high pressure, as they deal with inflationary levels which are" significantly higher than the headline rate" . In addition, higher education prices are reported to have increased by more than 13 per cent during the last 12 months. The rise in financial difficulties for these Britons was mainly attributed to rising costs of rent and basic goods. Overall, both the under- 30s and those over the age of 75 are currently privy to an inflation rate of 5 per cent- a figure which is about a fifth above the official rate of 1 per cent. However to ensure that they receive a competitive rate of interest, consumers may well wish to take out a copy of their credit report first to ensure that it is free of any errors.

As a result, those concerned that they are set to face an increase in financial pressure could be advised to apply for a low- rate personal loan to help them manage their spending over the coming months. Earlier this year, chief executive of, Sean Gardner MoneyExpert, reported that those who have adverse financial histories are often liable to take out loans which attract a higher rate of interest.

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