Poor Feel Inflation Pain More

A new report by the Institute for Fiscal Studies has found that the poorest fifth househ olds have seen an annual increase in inflation of 4.3% between 2008- 2010.

The table above (taken from the report) shows the correlation between income and inflation. The statistics show that the higher the income, the lower the effect of inflation.

The report found that, “Pensioners, and in particular those dependant on state benefits, experienced higher rates of inflation than non-pensioners”


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