Elderly people in the UK are the worst affected by the continuing slowdown in the economy, it has been claimed.

Research conducted by the Alliance Trust has found that over 50s face a greater impact when it comes to inflationary increases, with the over 75s age group bearing the brunt with an inflation rate of 3.4 per cent.

This is compared to the 2.6 per cent inflation rate experienced by the under 30s. Older people are particularly affected because most of their household income is spent on items experiencing price rises.

Food prices, utility bills and petrol costs have seen inflationary increases of six per cent, four per cent and 20 per cent respectively, something that affects the over-75s more than other age groups, as Shona Dobbie, head of the Alliance Trust Research Centre, explained.

"Over-75s are once again the most exposed to the negative impact of high food and energy costs," she said.

"Price inflation for some food groups, such as dairy products, is currently running above 15 per cent. This impacts the elderly who spend a higher proportion of their budgets on basic food items."

Similarly, last month the financial services group found that the over-75s and 65 to 74-year-old age bands suffered rates of 3.4 per cent and 3.3 per cent.