Renters and those with a mortgage hit by higher inflation

Renters, those with a mortgage and workers have suffered from steeper inflation compared with those who own their home outright and retirees, highlighting that younger generations have had a tougher cost of living crisis.

According to calculations by the Office for National Statistics, private renters and mortgagors experienced inflation rates of 3.2 per cent and 3.7 per cent respectively in the year to June.

This compared with an annual inflation rate of 1.3 per cent for outright owner occupiers, the ONS said, adding that retired households also had the lowest inflation rate of any group the statistics agency examined at 1.2 per cent. Workers, in contrast, experienced an inflation rate of 2.9 per cent.

The ONS said: “Mortgage interest payments contributed 2 percentage points to