Inflation Fears

Australian pensioners are highly fearful of the depreciating buying power of their savings as creeping inflation starts to make headlines locally and around the world.

53.8% of those aged between 61-70 and 66.7% of those over 71 are worried about inflation, according to new research.

Inflation as an issue has overtaken interest rates as the key concern for Australian consumers, despite six successive rates rises in less than two years.

The research by CoreData reveals 96.2% of more than 1,000 respondents show some level of concern about inflation, with 16.4% say that they are very concerned.

3.8% of the respondents are not concerned by inflation at all.

This group of ‘very concerned’ were concentrated in the older generations, perhaps the result of past experiences as to the damaging impact inflation can have but also due the fact any significant rise in the cost of living will reduce their lifestyle in retirement.

Lone parents are more concerned with inflation than couples.

74.6% of consumers in Western Australia indicated they were fairly or very concerned with inflation, which was way above the national average of 57.6%.

As a group respondents were more concerned by inflation (34.1%) than interest rates (27.5%) with 38.4% concerned with both.

The data was collected over five days between May 15 and May 20.

In a worrying message to the Rudd Government, 27.8% claim that they have no faith at all in government in managing inflation, with only a meagre 2.3% said that they have a lot of faith in the government.

74.6% of consumers in Western Australia indicated they were fairly or very concerned with inflation, which was way above the national average of 57.6%.