There is still a large gap between the rate of inflation faced by young and old, it has been suggested.

According to the Alliance Trust, the elderly are affected by inflation rates 71 per cent higher than those of under-30s.

"The benefits of falling prices continue to come through more slowly for the elderly, who spend a larger share of their budgets on the basic goods and services; where price falls have been more limited," said Shona Dobbie, head of the Alliance Trust Research Centre.

She revealed that low interest rates are also an influencing factor as the elderly often rely on the income they receive from their savings.

The headline rate of inflation may be starting to fall, the Alliance Trust pointed out, although basic goods inflation remains high and has the greatest impact on older generations.

Last month’s Financial Reality Index from the Alliance Trust said that there were glimmers of hope to be seen for consumer finances as it was at its highest level since the second quarter of 2008.