Debt concerns as inflation rises?

There could be increased debt concern in Britain as it has been revealed that inflation has risen for all age groups.

The most recent figures released by Alliance Trust Research Centre show that 50-64-year-olds have been the hardest hit by the hike for the sixth consecutive month.

People in this age bracket currently face an inflation rate of 4.8 per cent, which is mainly because they spend more of their disposable income on transport, the organisation suggested.

The study has shown that the headline rate in March rose from three per cent to 3.4 per cent.

Shona Dobbie, head of the body, explained the reasons for the elevation.

She said that as well as petrol price, there is also “the impact of the increase in VAT at the start of the year and the fact that recent sterling depreciation has pushed up the cost of imported goods”.

Figures recently released by MGM Advantage showed that retired couples could face debt troubles as the cost of living has dramatically increased.

By Joe Shervin