ONS reveals inflation fell in September
17 October 2012
New inflation figures released by the Office for National Statistics (ONS) have shown that there was a fall in the headline rate to 2.2 per cent during the month of September.
This represents a significant drop from the figure of 2.5 per cent that was recorded in August and it was noted that this is now as low as inflation has been in the UK for almost three years.
But despite the decrease in September, it was noted by the chief economist at the British Chambers of Commerce David Kern that there is expected to be a rise once more in October.
“Many expected a fall in inflation in September, but the decline was smaller than predicted. The decline seen in this month’s figures is largely down to significant price increases a year ago when inflation reached a peak for both consumer and retail prices," he said.
Vince Smith Hughes, retirement expert at Prudential, stated that even though inflation has come down from over five per cent a little over a year ago, this is not going to benefit pensioners in the UK, due to the fact that individuals at this time of their life typically spend a higher proportion of their income on fuel and other essentials, which he noted can result in inflation typically costing pensioners around £1,000 per year more than the rest of the population.
Data released by the Alliance Trust Research Centre revealed that older people are no longer affected by higher rates of inflation than other sections of society, with the youngest age group, the under 30s, found to be currently facing the highest rate of inflation, at 2.3 per cent.
Older people are now seeing an inflation rate of just two per cent, according to the organisation's research, which is lower than the average inflation figure revealed by the ONS.
Inflation figures for Europe have also been released and the headline figure was shown to be 2.7 per cent during September, showing the UK is now controlling the effects of inflation better than the continent as a whole.
Those who want to know how inflation is going to affect their retirement options and perhaps want to learn about how equity release plans can benefit them can contact Key Retirement Solutions for details and advice.
Posted by Tom Papworth