The average household income grew at its slowest rate in 14 months, a new survey has found, due to a slowdown in wage growth and a slight increase in inflation.
According Asda's Income Tracker published today, consumers were £13 – or 7.2 per cent – better off year-on-year in December with an average of £194 of discretionary income to spend a week.
But this reflected the slowest percentage growth since October 2014, as inflation hit 0.2 per cent – its highest level since January 2015.
Rates of spending power growth also varied across the country. London led the way with disposable income reaching £259 – up 5.8 per cemt year-on-year.
The East of England saw the biggest change in spending power – up £20 to £218 and closing the gap with London. Meanwhile the north east recorded the smallest rise of £8.
Andy Clarke, Asda President and chief executive, said:
Throughout 2015, falls in commodity prices and a strengthening pound contributed tohigher discretionary income in households across the UK. We’ve also passed a milestone for the British economy, with inflation remaining at zero for a full calendar year for the first time since records began. Despite these positive economic indicators, spending patterns remain erratic. Although falling vehicle fuel costs are putting extra pounds in consumers’ pockets, this doesn’t necessarily translate to an increase in household spending.