Household budgets have shown an eighth consecutive month of improvement, according to the latest figures from Asda’s Income Tracker.
The amount the average household had available to spend after paying taxes and essential bills in November was up by £15.20 a week, compared with the same period a year earlier, the supermarket said.
It marks the highest annual growth rate in over two years (since September 2021), with the average disposable income up to £228 in November 2023.
Asda said it showed the financial burden facing many families continued to ease in the run-up to Christmas, thanks to sustained annual growth in gross income and a sharp slowdown in inflation.
Transport, including fuel, was the main driver of the latest month-on-month slowdown of inflation, with prices falling by 1.5% year-on-year in November. The food category also saw growth fall into single-digit territory for the first time since June 2022, at 9.2%.
Despite the improvements, the tracker suggested the lowest earning households were still bearing the brunt of the cost of living crisis with a deficit of £70 in disposable income per week – meaning their take-home pay is not enough to cover spending on bills and essentials.
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