Disposable income for shoppers under 30 has fallen by more than a fifth over the past year, according to Asda’s latest Income Tracker survey.
The supermarket said sharp increases in spending on essentials such as rent, groceries, transport costs and utility bills in July resulted in disposable incomes for the under-30s falling by 21.6% compared with the same month in 2021.
Essential spending among the under-30s rose by 12.5% in the period to an average of £774 per week, leaving individuals and families in this demographic with a disposable income of just £150 per week after paying taxes and essential bills.
Meanwhile, household disposable income for all demographics reduced by 16.5% year on year in July as soaring living costs continued to eat into family budgets.
It was the second-largest fall since the Income Tracker was first published in 2008 and leaves households on average more than £40 a week worse off compared with July 2021.
Asda’s report comes amid predictions inflation could hit 18% next year.
Investment bank Citi said yesterday inflation was “entering the stratosphere”.
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