Inflation hits pensioners and the poor hardest

Rising inflationPeople on lower incomes, including pensioners, have been hardest hit by inflation over the past 10 years. An Institute of Fiscal Studies (IFS) report has said that between 2008 and 2010 the poorest 20% of households suffered an average annual inflation rate of 4.3%. In contrast the rate of inflation suffered by the wealthiest 20% was just 2.7%. The reason for this disparity lies in the different goods and services that we buy. Although there are two main measures of inflation CPI (Consumer Price Index) and RPI (Retail Price Index) ...