- The average UK household had £160 a week of discretionary income in January 2014, up £3 a week year-on-year
- Boosting family spending power in January was the fall in the rate of essential item inflation to 1.9% – the first time inflation has dropped below 2% in over 4 years
- Other factors boosting discretionary income were falling petrol and diesel costs – down 1.8% year on year – and persistently low food price inflation (2%)
- Although utility bills continue to put pressure on household finances, the rate at which these bills went up in January slowed on previous months as the effects of new government measures, introduced in the Autumn Statement took hold
- The latest data also shows the first signs of a pick-up in pay growth (at 1% year on year), although a small rise in the rate of unemployment to 7.2% in the final three months of 2013, suggests the need for continued caution when it comes to the economic outlook for the year ahead
The latest Asda Income Tracker has revealed that family spending power increased by £3 a week year-on-year in January. The rise was driven by a fall in the rate of essential item inflation to 1.9%, the lowest rate in four years and below the government target of 2%.Read more and see full report.