Homeowners with mortgages have been hit harder by inflation than renters, according to figures released from the Office for National Statistics.Overall, household costs inflation was 3.6 per cent in the year to March, according to ONS. This inflation rate tracks the rate at which the price of goods and services such as food, housing, energy, and transport increase over time. But analysis of the data shows that, over the last five years, those with a mortgage have seen their costs rise at a faster rate than renters. Mortgaged homeowners have seen 37.6 per cent inflation, compared with 30.7 per cent for private renters.It still means that for every £100 a mortgaged homeowners was having to spend five years ago, they are now having to fork out £137.60 for exactly the same lifestyle. Renters and mortgaged homeowners have been hammered by rising rents and higher mortgage rates respectively over the last few years. Another jump: ONS's household costs inflation rate tracks shows that renters have seen a personal rate of inflation of 30.7% over the last five yearsRenters are at the mercy of rent increases by their landlords, though this will now be more tightly regulated by the Renters' Rights Act. Meanwhile, households have been remortgaging onto far higher rates since the mini-Budget in autumn 2022.Is the gap closing? The cost of living gap between mortgaged households and renters may be narrowing, however. Over the last 12 months, private renters saw their costs rise by 3.7 per cent on average compared to 3.6 per cent for those with a mortgage.The ONS also found that lower earners, who are more likely to rent, have been impacted more by inflation than high earners in the last year.Lower earners faced inflation at 3.7 per cent over the last 12 months while higher earners saw their costs rise by 3.5 per cent on average. Sarah Coles, head of personal finance at AJ Bell, says: 'Rent rises have slowed in recent months, but because they typically make up 34 per cent of tenant incomes, those smaller rises have still bitten hard. 'Meanwhile, these groups spend a bigger proportion of their income on the essentials, so the gradual rise in everyday bills has also taken a toll.'Over the longer term, looking back five years, those with mortgages have cumulative inflation at an incredible 37.6 per cent.'This owes a great deal to how low mortgages were during the pandemic and how they rose dramatically in the years that followed.'For retirees, inflation in the year to March was 3.6 per cent, compared to 3.7 per cent for working households. Over a five-year period, retirees have faced slightly less price pain, seeing their costs rise 33.4 per cent on average compared to 34.1 per cent on average for working households.That means the same basket of goods that cost them £100 five years ago will typically cost them £133.40 today. While renters are unlikely to see the costs of their rent fall, mortgaged households could see their rate of inflation fall if and when mortgage rates start to come down.At present, this does not look like happening anytime soon with the Bank of England closely watching the inflationary impact from the conflict in the Middle East.The Bank of England opted to hold interest rates at its last three meetings at 3.75 per cent - in February, March and in April.The central bank uses interest rate rises as a lever to curb borrowing and spending when inflation gets too high, so when inflation is falling, this gives it headroom to reduce rates. How can you combat the cost of living? For those living on a tight budget there are no easy answers, as inflation squeezes even harder. No matter who someone is, the reality is that shopping with £100 today will buy a considerable amount less than it could five years ago. 'Don’t assume any of your costs are written in stone – even those things you consider essential,' adds Sarah Coles.'You can shop around for a better energy deal. You can consider a water meter, so that cutting water use brings your bills down. You can talk to anyone you pay regular bills to about better deals. 'If you have finished the minimum contract on your phone, you can switch to a sim-only deal, which is significantly cheaper. 'If you have completed the minimum contract for media or broadband services, you can often negotiate a better deal if you’re considering leaving. Alternatively, you can leave and find a better deal elsewhere.'For those in their retirement, inflation can pose a serious threat to their income from any defined contribution pension.'If you want an annuity, don’t just think about the initial income, but the impact of inflation over time.'It also makes sense to consider drawdown, as this enables you to leave a portion of the money invested, where it not only offers more flexibility, but can also keep pace with inflation. 'It’s why so many people consider drawdown, or a combination of drawdown and annuities as they go through retirement.'