According to Asda's July Income Tracker, families in the UK have seen a 1.9% increase in earnings this year - or around £10 per week, compared to the same time last year. Disposable income reached an average of £202 per week, a 5.4% increase compared to the same period in 2015.
According to the report, the growth in spending-power slowed to its lowest rate since October 2014, with inflation rising to 0.1%. Inflation levels were expected be further effected by the falling value of the pound following the recent Brexit.
Middle-income households saw the largest increase in disposable income in July, of 5.5% compared to July last year. This extra increase was contributed to the households spending a larger proportion of income on food and utilities, which categories have seen prices falling steadily.
The report further identified a growing divide between the highest-earning and lowest-income households in the UK, stating that in July 2016, the wealthiest 20% earned an average income of ten times that of the lowest-earning 20%, who took home around £180 per week.
Unemployment in the UK has remained at its lowest level in 11 years - at 4.9%.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Martha Sparrius. To subscribe to ESM: The European Supermarket Magazine, click here.
