Consumers Worried About Impact of Rising Inflation Rate

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In November, consumer price inflation (CPI) reached 5.1%. Retail price index (RPI) inflation was still two percentage points higher at 7.1%, the highest of this measure since March 1991.

Aegon said nearly two-thirds (64%) of those polled expressed concern about the impact that an increase in inflation will have on their personal finances, with the figure rising to 70% among Gen Xers, the elderly. from 43 to 56 years old.

Rising home energy prices are at the top of the list of concerns, with 80% of people over 76 citing this as a top concern.

Many also expressed apprehension about the impact on their ability to plan financially in advance – 37% expressing concern over their ability to save so much money and 36% fearing a decline in their purchasing power. cash savings.

Aegon’s director of pensions, Steven Cameron, said many people now face a “cost of living crisis” as prices rise.

He said: “At what is already a difficult time for households across the country, our research shows that a high proportion is concerned about the immediate impact of levels of inflation not seen in a decade on the economy. affordability of daily life, from rising costs of gas and electricity to the cost of essentials such as clothing and food.

“Without a doubt, those on fixed incomes are facing a tough time, and these include retirees who will be significantly affected by a large gap between the current level of inflation of 5.1% and the 3.2 Much lower% used to calculate the increase in state pensions next year. “

Cameron added: “A high proportion of those polled said they were concerned that they might not be able to save as much due to rising inflation and the declining purchasing power of cash savings. at risk of high inflation. Although the Bank of England raised interest rates to 0.25% in December, all of this increase passed on to savers will likely be offset by lower purchasing power through inflation. “


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