View more on these topics

Inflation hitting poorest hardest, says IFS

Inflation has affected those on lower incomes worse than those on higher incomes, according to the Institute for Fiscal Studies (IFS).

According to the BBC, the IFS says that the poorest fifth of households have suffered an average annual inflation rate which is nearly 60% more than that of the richest fifth over the last decade.

The poorest 20% experienced a rate of 4.3 per cent, while the richest 20 per cent experienced only 2.7 per cent. The lowest income earners are defined as those earning up to £13,052. The highest earners have an income in excess of £37,336.

According to the BBC, higher earners have benefited more from lower mortgage rates. Lower earners are forced to spend a higher proportion of their pay on essential commodities such as electricity and food.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Julian Stevens 14th June 2011 at 5:50 pm

    It’s obvious isn’t it? Life is like a crap sandwich ~ the more bread you’ve got, the less s**t you have to eat.

  2. Julian Stevens 15th June 2011 at 9:15 am

    ‘Twas ever thus. The more money you’ve got, the better placed you are to ride out the economic storms that inevitably blow up from time to time.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com