Why young people and renters are among the worst hit by rising prices

Business

Young adults and renters are some of the groups of people worst hit by rising prices as official figures show around 1 in 20 said they’d run out of food in the past 2 weeks and couldn’t afford more.

Those aged 25 to 34 were at greater risk of financial vulnerability than those over the age of 75, the data showed.

Renters were more likely to report difficulty paying housing costs.

While more than a quarter (28%) of mortgage holders said it was difficult to afford their mortgage, 43% of renters reported it was very or somewhat difficult to afford rent.

Compared to mortgage payers, renters were spending less on food and essentials, were more likely to have run out of food and to be behind on energy bills.

Renters spent an average of 21% of their disposable income on rent, compared to 16% of mortgage payers, the Office for National Statistics (ONS) said.

Similarly, disabled adults faced greater financial difficulties than non-disabled adults.

More from Business

The ONS has published analysis on the impact of the cost of living crisis from February to the start of May, before mortgage rates began increasing in earnest.

It analysed the proportion of people affected by price rises, and the characteristics associated with financial vulnerability.

It comes as the government announced public sector pay rises of between 5% and 7% this week and official figures showed wage growth remained at record high of 7.3%, but was still outpaced by inflation.

Products You May Like

Articles You May Like

Book Riot’s Deals of the Day for October 8, 2024
Man detained for breaking into USC students’ home in South LA – NBC Los Angeles
What to know about Hurricane Milton after it slammed Florida – NBC Los Angeles
New Gorilla Botnet Launches Over 300,000 DDoS Attacks Across 100 Countries
Microsoft Detects Growing Use of File Hosting Services in Business Email Compromise Attacks