Family spending power recovers slightly
There has been a small improvement in disposable incomes for families, according to new research from Asda, but levels are still well below where they were two years ago.
Research carried out by Asda has shown that families were £1 better off in October this year than they were in the same month in 2011, however, researchers said shoppers were still £13 worse-off than two years ago.
Family spending power, according to Asda, improved for the fifth consecutive month in October, however, researchers also noted that it was still at a slower rate than seen in previous years.
The slowdown in spending power growth was driven by a rise in consumer inflation to 2.7% in October. Asda said that although falling unemployment had helped reduce some of the effects of the rising costs of living, growth of earnings was still very weak.
CEO and president of Asda Andy Clarke said: “For families, the mixed picture continues with improvements in disposable income seen during the summer months almost wiped out by rising energy prices and inflation back on the rise.
Rob Harbron, an Economist at Cebr, said: “The latest movement in the Asda Income Tracker illustrates how economic conditions are remaining tough for UK household finances. With inflation on the rise again and further cost pressures in the pipeline, the cost of living looks set to continue growing faster than earnings for some time.”
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