15 October 2008
Rising gas and electricity prices have been responsible for pushing up inflation, the Office for National Statistics (ONS) has revealed. According to official figures, consumer price inflation is now running at 5.2% following increases in the cost of gas and electricity by the major energy providers. This is up from 4.7% in August and is way above the Bank of England's 2% target. The ONS said the increase was driven by soaring gas and electricity prices, which have risen by 50% and 30% respectively over the last 12 months. Meanwhile, Alliance Trust has warned that elderly consumers are facing a 7.8% rate of inflation because they spend a higher proportion of their income on energy. Shona Dobbie, Head of the Alliance Trust Research Centre, said: "This current spike in inflation is particularly worrying for elderly consumers especially as we enter the winter months. "Higher gas and electricity prices leave these households with less money to spend elsewhere."