Inflationary pressures could be adding to the financial problems of the UK population more seriously than official figures indicate, according to a recent report from the Alliance Trust.
The Alliance Trust is convinced that consumers aged under-30, many of whom are aiming to become debt free, are among those being most acutely affected by inflation.
In common with the under-30s, Britain’s over-60s are reportedly experiencing “real” inflation of around 2.5 per cent, which is 0.4 per cent above the government’s headline rate for October.
“More than four years of higher-than-average inflation has been eating into pensioners’ budgets and it looks like this situation is going to continue for some time,” said Shona Dobbie, head of the Alliance Trust’s Research Centre.”
“We are also concerned about the more recent trend of young adults also facing inflation which is significantly higher than the headline rate, largely due to higher rents and education costs, as well as the costs of basic goods.”
The Council of Mortgage Lenders recently suggested that affordability for first-time buyers around the UK is worsening.