Variations in the inflation rate for different income groups

The poorest fifth of the population faced a higher inflation rate than other income quintiles in every year but one over the period 2003–2013.

File Download data (695 bytes)

Link to source: Variation in the Inflation Experience of UK Households

Inflation affects everyone in the UK, but changing prices have different effects on the inflation rates faced by people on low and high incomes because of variations in the goods and services they buy. For instance, people living in poverty spend a much higher proportion of their income on food, energy and housing.

The cost of different types of goods and services has changed in different ways, particularly since 2003, with the cost of electricity, gas and fuels rising much faster than overall inflation. This has contributed to the poorest fifth of the population experiencing a higher rate of inflation than the rest of the country in every year over the period 2003–10, except for the year 2010.