Disposable income down again says Asda
The disposable income available to families in the UK has fallen for the ninth month in a row in September, according to Asda supermarkets. The retail group says the average British family was £4 worse off last month than they were in September a year ago.
In 2009, families had an average of £181 to spend once they had paid all their rent and bills. This year, however, people were out of pocket with only £177 a week going spare. According to Asda, such a fall is down to the fact that take-home pay has failed to keep pace with rising prices for food, energy and clothes.
As measured by the Consumer Price Index, the overall rate of inflation was 3.1 percent in September this year. Despite the fact that the level of average earnings shot up during the previous months to its highest level since summer 2009, the squeeze on disposable income continued. Gross pay this September was on average 2.6 percent higher than a year ago.
The report was compiled for Asda by economist at the Centre For Economics and Business Research, Charles Davis. He said that spending power is still being affected as the growth in earnings is not level with the rising prices for goods and services. He added that essential goods are become more expensive due to rising commodity prices and labour costs around the world.