Pension News UK Pensioners Experience Soaring Inflation Since 1996
22 August 2006
Pensioners have experienced unprecedented inflation rates of around 34 per cent over the past ten years, according to the latest Clerical Medical Pensions Report.
Rising housing costs, mostly through increasing rates of council tax, account for the majority of this massive inflationary rise, about 25 per cent, while increasing utility bills and the higher cost of weekly food shopping are also contributing factors.
The only categories in the Clerical Medical report to show falling prices in the last ten years were clothing and footwear, which fell by 21 per cent.
“Pensioners have faced a one-third rise in the average cost of living over the past decade,” confirmed Tim Crawford, group economist of Clerical Medical.
“Higher housing costs have been the key factor driving up living expenses for pensioners with these costs accounting for almost a quarter of the average pensioner’s total spending.”