The over-75s are still the age group being hardest hit by inflation, latest figures show.

Spiralling home-related costs such as energy and council taxes mean the elderly's annual inflation rate in December increased further to 4.2%, some 40% higher than headline inflation and more than double the government inflation target, according to the Alliance Trust Research.

The headline findings, based on analysis of official December inflation figures and their impact on different age groups’ spending patterns, are:

• Inflation for the over 75s is now running at 4.2% - that’s 40% higher than headline inflation of 3.0%
• Gas price inflation of 40%, electricity price inflation of 27% and food price inflation of almost 5% continue to drive the elderly inflation crisis.

There is general unease now that the UK’s headline rate of inflation has reached 3.0% - but the over-75s have been facing a rate of inflation in excess of 3% since May.

Shona Dobbie, head of the Alliance Trust Research Centre, points out that their 4-year study has shown consistently that the UK's elderly are hardest hit by inflation among all the age groups.

Although the inflation rate facing every age group is on the rise, the impact of higher prices for basic goods, such as gas, electricity and food, falls most heavily on the elderly, who spend a larger proportion of their budgets on these necessities.

The Alliance Trust maintains its call for pensions to be linked to rise in retired cost of living.