ALLIANCE Trust's independent study of age related inflation has found that the inflation rates facing all five of its identified age groups has increased.

In each case the rate of inflation recorded is higher than the official headline rate of 2.5 per cent released today. The figures released by Alliance Trust show that in February, inflation hit the over 75 year olds and the 65 to 74 year olds the hardest - these two groups now face inflation rates of 3.4 per cent and 3.3 per cent respectively.

Alliance Trust Research Centre's headline findings, based on the updated spending patterns of different age groups and analysis of official February inflation figures are: The over 75 year olds face the highest rate of inflation. Our study calculates the rate of inflation facing households in this age group to be 3.4 per cent, which is 36 per cent higher than the official rate of 2.5 per cent. Younger retired households, aged 65 to 74 years also face an inflation rate which is much higher than the officially recorded rate.

Food price inflation is now at 6 per cent, electricity prices have risen by more than 5 per cent over the last year and petrol prices have jumped by more than 20 per cent.

The youngest age group, the under 30s, faces the lowest level of inflation. Their rate of inflation is 2.7 per cent, which is still higher than the official headline rate of inflation. The under 30s are benefiting in relative terms from falling clothing and audio-visual product prices, but are still under budgetary pressure from higher fuel, education and rent costs.

Head of the Alliance Trust Research Centre Shona Dobbie said: "Our study continues to highlight the extent to which the impact of inflation can differ from the official headline figure. In particular, we repeatedly identify big variations in the inflation rates applying across different age groups, reflecting the different spending patterns of each group."