Commenting on today’s new consumer price inflation (CPI) data for November from the Office for National Statistics, Alistair McQueen, Saving & Retirement Manager at Aviva said:
“Rising inflation continues to hit the young hardest. Could it breach 4% in 2017? Today’s headline consumer price inflation (CPI) figure of 1.2% is already the highest it has been since October 2014 (1.3%). Beneath the headline figure, Aviva’s analysis* shows that the under-30s continue to carry a greater burden of these price rises.
“The pressures of rising housing, fuel and education prices are hitting the young harder. They are also benefiting less from falling food prices, given their balance of shopping habits. Over the past year, the under-30s have experienced a 70% higher rate of price inflation than the UK average, while the over-65s have benefited from an inflation rate 35% below the national figure.
“There is wide expectation that inflation will continue to rise through 2017. The Bank of England can see it hitting 2.7% next year, but this headline figure could conceivably mask an underlying inflation for the under-30s of over 4%. At this level, wages would fail to keep pace with prices, and the first step on the housing ladder would become even harder to achieve. The need for the young to carefully manage their finances is greater than ever.”
Ends
Sources
* Aviva’s Age-Inflation Index for November 2016 compares the impact of inflation on specific age groups based on their spending habits:
| Aviva’s Age-Inflation Index – November 2016 | ||||
| Headline CPI | Under-30s | 30-49 | 50-65 | Over 65s |
| 1.2% | 1.4% | 1.2% | 1.2% | 1.0% |
If you are a journalist and would like further information, please contact:
Aviva Press Office: Fiona Whytock: 07800 692 299 or fiona.whytock@aviva.co.uk
Aviva’s retirement spokesperson, Alistair McQueen, is available for comment/interview
* Aviva’s Winter 2016 Real Retirement Report – ‘Taking pensions from the Stone Age to the Digital Age’ – is published tomorrow (14th Dec) and available under embargo by contacting aviva@instinctif.com *
Notes to editors:
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