Inflation continues to fall
New figures from the Office for National Statistics have revealed inflation has continued to fall, although at a slower pace than had been predicted by many financial commentators.
Homeowners aged between 55 and 95 may still be looking into options such as lifetime mortgages in order to improve their financial situation, but are likely to welcome the news headline inflation is now at 3.4 per cent, down from 3.6 per cent in last month's report.
Factors behind the small drop in the price of household items included the fact energy bills have been dropped by all of the UK's major suppliers over the course of the last few weeks.
Recreation, culture and transport were also named as being among the reasons for the fall in inflation, which stood at over five per cent for a short time last year.
However, the increasing cost of vegetables and alcohol went some way to cancelling out the difference made by the declining energy prices, while many expect the cost of gas and electricity to be increased again in the coming months.
That may lead many older people to be worried about how they are going to cover the cost of the rising bills, as they could be relying on their savings and interest rates remain at 0.5 per cent, which is a record low for the UK.
Last month, the Alliance Trust Research Centre found that older people are still facing a higher average rate of inflation than any other section of society, with the body claiming their rate stood at 4.3 per cent, well above the 3.6 per cent figure that was officially announced.
Senior economic analyst at the body Linsey Thomson predicted the trend for falling inflation is set to continue over the course of the coming months.
However, older homeowners who remain concerned about their finances may wish to use the equity release calculator from Key Retirement Solutions to see how much money they could unlock from the value of their house.
Posted by Richard Planner
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NOTES TO EDITORS
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