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Poorest households face fastest cost of living rise Poorest households face fastest cost of living rise
(about 2 hours later)
UK households with the lowest income faced the fastest cost of living rise in the past 11 years, figures show.UK households with the lowest income faced the fastest cost of living rise in the past 11 years, figures show.
The rising cost of domestic gas and electricity was one suggested reason for the trend.The rising cost of domestic gas and electricity was one suggested reason for the trend.
Households without children and retirees also experienced faster price increases in their typical basket of goods, the Office for National Statistics (ONS) said.Households without children and retirees also experienced faster price increases in their typical basket of goods, the Office for National Statistics (ONS) said.
The ONS analysed inflation rates for different households from 2003 to 2014.The ONS analysed inflation rates for different households from 2003 to 2014.
Those who spent the most money saw the lowest level of inflation, the ONS concluded.Those who spent the most money saw the lowest level of inflation, the ONS concluded.
This could be explained, in part, by prices of package holidays and education barely rising over recent years.This could be explained, in part, by prices of package holidays and education barely rising over recent years.
The ONS said that households in the bottom 10% of the income scale had an average annual inflation rate of 2.9% each year from January 2003 to October 2014.The ONS said that households in the bottom 10% of the income scale had an average annual inflation rate of 2.9% each year from January 2003 to October 2014.
This compared with an inflation rate of 2.6% among the wealthiest 10% of UK households.This compared with an inflation rate of 2.6% among the wealthiest 10% of UK households.
The top 10% of households in terms of spending saw prices rise, on average, by 2.3% over the same period. This compared with 3.7% among the 10% of households which spent the least. TUC General Secretary Frances O'Grady said: "This shows that people on low and middle incomes have seen their living standards fall the most. Households on lower incomes have faced a double whammy of the highest inflation rates at the same time as stagnating wages."
The ONS said the top 10% of households in terms of spending saw prices rise, on average, by 2.3% over the same period. This compared with 3.7% among the 10% of households which spent the least.
Households with children saw the cost of living rise by 2.4% on average each year, compared with 2.7% for those without children.Households with children saw the cost of living rise by 2.4% on average each year, compared with 2.7% for those without children.
Non-retired households saw prices rise on average by 2.5%, compared with 2.8% for retirees.Non-retired households saw prices rise on average by 2.5%, compared with 2.8% for retirees.
Researchers at the Alliance Trust have tracked inflation rates for different age groups in recent years.Researchers at the Alliance Trust have tracked inflation rates for different age groups in recent years.
It suggested that those aged 75 and over spent a bigger proportion of their income on gas, electricity and food than any other age group - with the proportions rising steadily with age.It suggested that those aged 75 and over spent a bigger proportion of their income on gas, electricity and food than any other age group - with the proportions rising steadily with age.