Inflation in the cost of living is increasing at a greater rate for those aged over 65, according to new research.

Prudential has released data which suggests that annual expenditure for older people is currently increasing at a rate of about nine per cent - more than double the national average of four per cent.

Rising food prices was one cost identified as impacting on older people more significantly than other age groups, since more of their income is spent on such consumables.

Meanwhile, pensioner income is increasing at one third of the rate, at three per cent.

Gary Shaughnessy continues: "Food prices have been rising and many predict that these will continue to do so for a number of years.

"Those hardest hit by this trend are retired people who spend the highest percentage of their income on food and non-alcoholic drink of any other group."

Meanwhile, the cost of financial products for the retired has recently been highlighted by price comparisons service Moneysupermarket, which called on insurers to graduate the increases in premiums for older people.

The firm made the assertion on the back of research which showed overnight increases in premiums of up to 100 per cent as consumers reach their 66th birthday.