Industry News

Rate of inflation significantly higher for millennials than for pensioners, analysis suggests

New research from financial services group Fidelity International has suggested that young adults in the UK face inflation rates that are significantly higher than those for pensioners.

The analysis indicates that the inflation gap is being widened due to millennials spending proportionately more on amenities that are increasing in price.

The report also found that individuals aged below 30 are spending less of their income on groceries, compared to those from older generations – meaning that they have not been taking advantage of falling food prices.

In March, the rate of inflation for the under 30s was 0.9%, compared to the official rate of 0.5%. During this same month, the inflation rate for retirees was just 0.3%.

Maike Currie, investment director for personal investing at Fidelity International, stated: ‘On the surface, it may look like the cost of living has barely increased over the last year, but scratch beneath the surface and there is a clear generational divide when it comes to the cost of living.

‘Our analysis shows the current rate of increase in the cost of living is three times more for millennials than it is for retirees, with those under 30 spending a greater proportion of their income on the areas which have suffered the highest price increases – education and housing.’