Pensioners bear brunt of inflation

Pensioners have seen the average cost of living soar by more than a third during the past 10 years, research showed on Saturday.

Rising housing costs, at 69 percent, have been a key driver behind pensioner inflation, according to the Clerical Medical report.

The cost of goods and services used by pensioners has risen by 36 percent over the past decade, faster than the increase in the retail price index (RPI), at 32 percent.

Housing is the single largest cost that pensioners face, with accommodation costing an average of 63.65 pounds per week, and accounting for 25 percent of pensioners' overall expenditure.

Increases in council tax, at 89 percent, and repairs and maintenance, at 84 percent, were the key factors behind the rise in housing costs.

Other areas of spending which have seen steep increases in price among pensioners include alcohol and tobacco, up 45 percent since 1998, transport, up 43 percent, and food and non-alcoholic drinks, up 29 percent.

The only major category where prices have fallen is clothing and footwear, down 23 percent in the past 10 years.

Martin Ellis, chief economist at Clerical Medical, said: "The cost of living for pensioners has increased by more than that for all households during the period, particularly in the last five years."

Inflation is at its highest since July 1992 and well above the government's target of 2 percent. It rose to 3.3 per cent in May, stoked by huge rises in the cost of fuel and food.