Families had £9 less to spend per week in January than a year before, according to Asda’s Income Tracker.

The dip represents the largest fall since the supermarket began its survey in January 2007 – and the second consecutive record-breaking month.

The average family had £174 per week to spend in January, 4.7 per cent less than this time last year. But that was more than the £172 spend available to families in December.

Transport costs were the largest contributor to the headline rate of inflation in January, with petrol up almost 18% between January 2010 and last month.

“The latest drop in household spending power reflects what we’re seeing in our stores, customers making each pound count,” said Asda chief executive Andy Clarke (pictured).

“We’re conscious that we’re now seeing year-on-year declines in disposable income that reinforce our responsibilities to shoppers - holding back inflation, keeping prices low and being at our best in helping them deal with whatever the economy throws at them.”

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Record fall in family spending power as inflation takes toll (27 January 2011)