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Asda Income Tracker: Weekly spending power shows largest decline on record

Consumers suffered a £14 a week fall in family spending power in May compared to the previous year – the largest decline on record.

According to the Asda Income Tracker, the average family had £165 per week to spend in May, 8% less than this time last year.

Consumer price inflation remained at 4.5% in May putting disposable income under pressure.

The report shows that while the UK economy continues to gradually recover, consumers remain under significant financial pressure as growth in income fails to keep pace with the rising cost of living.

Asda chief executive Andy Clarke said: “The true cost of living is now beginning to take its toll. Inflation is rising twice the rate of earnings, petrol prices are at a record high and utilities bills are only getting steeper - all adding up to a £14 a week hole in people’s pockets.

“The combined effect is creating a perfect storm for customers trying to make ends meet.”

Readers' comments (1)

  • Asda,s findings are not surprising. The customer that shops in an Asda is your typical low-mid demographic. And we should all take note of their report. As the squeeze on family budgets is only really starting to come into effect.
    I see this only increasing over the next 18 months or so with all retail sectors seeing a decline on spending even the most essential item and that being food.

    Many thanks

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