Elderly people are likely to face financial problems following the latest inflation report, it is suggested.

The Alliance trust says the gap between young and old is further increasing, with the former experiencing inflation rates 75 per cent higher than their younger counterparts.

Shona Dobbie, head of the Alliance Trust Research Centre, says: "The elderly are simply not seeing the same benefits of falling prices as the young.

"The rate of inflation facing the over 75s is currently 4.9 per cent, but this is more than 50 per cent higher than the official rate of inflation of 3.2 per cent."

It is suggested that older people may have benefited from recent reductions in gas and electricity prices, although the rising price of food is causing further difficulties.

Research from the Alliance Trust suggests the rate of inflation for people under 30 stands at 2.8 per cent, while for those over 75 it is at 4.9 per cent.

The next rate of inflation is due to be announced by the Bank of England’s Monetary Policy Committee on April 21st.