Living standards are on the up, with the average family benefiting from an extra £16 in disposable income in February, according to today’s income tracker from Asda.
The average household had £184 to spend, after budgeting for necessities. That is up 9.2 per cent on the year.
The 3.3 per cent fall in the cost of food and a 16.6 per cent drop in petrol prices have helped families out, combined with a 1.6 per cent rise in earnings growth and a two per cent rise in employment over the 12-month period.
“With consumer price inflation falling to zero in February, a spell of deflation in the UK looks more likely than not in the coming months,” said Sam Alderson from the Centre for Economics and Business Research.
“As long as households feel confident enough to spend this windfall, deflation should be short-lived and boost, rather than dent, economic activity.”