The latest inflation statistics will likely be a cause for concern among elderly people, two charities have warned.

Help the Aged and Age Concern responded to figures published by the Office for National Statistics, which showed a rise in the cost of living.

Among the areas to see the biggest increases was utility bills, the statistics showed, suggesting that people may be looking to switch energy suppliers in search of a better deal.

"Many older people on low incomes will dread a bounce back of inflation, as they are already bracing for a round of post-freeze energy bills," noted Andrew Harrop, head of policy at Age Concern and Help the Aged.

It seems that inflation is not the only pressure that older people are seeing on their savings, as a recent report from Scottish Widows found.

Findings showed that over-50s are one of the groups hardest hit by the credit crunch in terms of saving for retirement.

The group said that despite pensions savings increasing overall since last year, people over 50 are most likely to have cut their savings in the last 12 months.

Mr Harrop commented: "With the leap in inflation outstripping government's predictions, many older people relying on their state pension income will be worrying about whether their incomes will stretch to meet essential costs over the coming months."

He emphasised that with the basic state pension set to increase by 2.5 per cent over the coming months, older people will find their savings strained even further.

A third (34 per cent) of retirees questioned by Scottish Widows have found that their retirement income is less than they expected and 36 per cent of retirees do not believe they prepared their finances adequately.

People need to make sure they choose the right utility providers to make sure they make as many savings as they can in this difficult economic climate.