The inflation rate facing the elderly is still running far higher than for the average householder, according to new research.

A study by investment trust company Alliance Trust found the inflation rate for homes run by the over-75s is 46 per cent higher than the official headline rate for the last two years.

And the situation is worse still for the oldest retirees with homeowners over the age of 75 experiencing an inflation rate 20 per cent higher than that faced by those aged 65 to 75.

"We have found the eldest householders are still the ones who are suffering the highest inflation rate," said Shona Dobbie from the Trust.

"This is because they spend a far higher proportion of their outlays on basic necessities such as food and drink, housing, electricity and gas and these are among the goods that have been rising in price most steeply."

Spending on food and drink accounts for more than 18 per cent of outlays of the over 75s but nine per cent of an under-30s householder's average spend.