Discretionary income is “fading fast” as fuel prices squeeze families
Growth in discretionary income is "fading fast" as fuel prices soared in January.
UK families had an average £205 of disposable income available each week last month, according to Asda's income tracker, up 3.5 per cent on the same month the year before.
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However growth in discretionary spending is "fading fast" as fuel prices shoot upwards – in January, fuel prices were up 17 per cent year-on-year, which Asda said had the biggest impact on families' cost of living.
Although mortgage interest rates and food and drink prices were in deflation in January, overall inflation increased to 1.8 per cent, up from 1.6 per cent the month before.
Scott Corfe, economist at CEBR, said:
The party is starting to fizzle out for consumers in 2017, with growth in discretionary spending fading fast.
The report from Asda found that unsecured household debt – including credit cards and loans – was £7,000 at the end of last year, up £508 on the year before. Household debt has been rising by nearly 10 per cent every year for the last five years.