Asda: Spending Power Declined In June For Two In Five Households

Two in five UK households (40%) saw their spending power growth fall in June, according to the latest Asda Income Tracker, as inflation rose to 3.6% – the highest rate since January 2024. 

The figures reveal that the impact continues to be felt most by the lowest earning households. Their spending power growth dropped by 8.1% year-on-year, leaving them with a weekly shortfall of £74 between what they earn and what they need to cover essential bills and everyday costs. 

The most significant drivers behind the rise in inflation were increases in everyday essential categories such as food, fuel, and utilities. 

While the impact of these increases is especially stark for lower-income families who spend a greater share of income on these basics, the effects are also being felt unevenly across the UK. 

Households in some regions such as the West Midlands saw their spending power growth shrink by 0.6%, compared to 12.0% growth in the same period last year. This left families in the region with an average disposable income of £191 a week – far below the UK average of £250 per week.   

However, this is still significantly higher than Northern Ireland as they continue to record the lowest disposable income figure at £129 per week. 

In stark contrast, spending power in London (£326), Scotland (£261) and the East of England (£267) remain above the UK average, with higher post-tax income and stronger job markets helping to protect households in these regions from rising prices. 

Reacting to this month’s Income Tracker, Sam Miley, Head of Forecasting and Thought Leadership at Cebr, said: 

“Inflation surprised to the upside in June, putting further downward pressure on the rate of growth in the Income Tracker. The concentration of inflation in essential categories, including food, transport, and utilities, is placing households under particular strain. Nevertheless, earnings growth remains robust and is offsetting price pressures for now.” 

Asda remains focused on supporting families by delivering unbeatable value. The supermarket was once again recognised as the UK’s lowest-priced major supermarket by trade bible The Grocer at its annual ‘Grocer Golds’ award ceremony. 

Source : Asda

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