Inflation for pensioners will reach 7 per cent in 2008, more than double the estimated national inflation rate, according to Newcastle Building Society Equity Release Service.
Its research predicts fuel and food will be the biggest contributors with fuel rising by 15 per cent and food by 12 per cent. The Government’s pensioner’s price index shows these two groups account for over one-third of all pensioners’ expenditure.
Newcastle says almost every year over the past five years, the pensioner’s price index has outstripped the retail price index (excluding housing), with pensioners facing higher than average inflation costs.
Newcastle Building Society retail sales executive Bob Mottershead adds that the findings paint a bleak picture for pensioners in 2008.
He says: “The rising cost of living is undoubtedly a concern for us all, however, commonly it is those in later years who suffer the most. For the many relying on the basic state pension of just £87.30 per week, these increases could negatively impact everyday quality of life.”