The latest retail prices index (RPI) is bad news for those in debt, experts reveal.

According to James Salmon and Sylvia Morris, speaking to the Daily Mail, it may prove a good thing for savers, but those who struggle financially already are unlikely to reap the benefits.

Professor Peter Spencer, from Ernst & Young, reveals to the experts: "’If prices are falling by two per cent, you are making real growth in the value of your spending power even if you earn no interest.

"Under these circumstances, you can spend two per cent of your capital and keep the purchasing power of your savings."

In light of this, however, the financial experts suggest the real value of people’s debts is likely to soar, which is hindered by the fact many people are unlikely to experience a pay rise to help pay it off.

Earlier this week, the Alliance Trust suggested that elderly people are most likely to suffer from inflation as they experience rises in the cost of food.

It added that reductions in the cost of electricity and gas are unlikely to help older generations as much as the young.