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    The young and the elderly are being hit by higher inflation than the official figures suggest, new research by Alliance Trust reveals.

    Despite official figures showing inflation at 1.8 per cent – the third month in a row it has been below the target two per cent – the actual increase affecting people under 30 and above 75 is far greater.

    It revealed the over-75s suffer inflation at 2.2 per cent, 22 per cent higher than the official figure.

    The under 30s suffer the second highest rate, thanks to the increasing cost of renting and education, the report claimed.

    Shona Dobbie, head of the Alliance Trust Research Centre, said: "Looking forward, we would not be surprised to see inflation pressures start to rise once more. The oil price has now moved to a new record level and this could push petrol and transport costs higher."

    Citizens Advice recently warned there were a growing number of people seeking its help with debt problems, which it partly attributed to increases in the cost of living.

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