Asda Income Tracker reports tenth month of decline, with UK families now £4 a week worse off than in the same month last year.
According to the latest tracker, the average UK family had £176 oer week to spend in October, down from £180 in 2009. The continued reduction in family spending power is the result of annual income growth failing to keep pace with the rise in the cost of essential goods and services.
Gross incomes rose just 2.2% over the three months to September compared with the same period last year. The cost of goods and services rose 3.3% in October, driven up by supply disruptions, the weakness of sterling and the impending VAT increase.
Inflation also remains above the Bank of England's 2% central target, reaching 3.2% in October.
Asda president and ceo Andy Clarke said: "In this environment UK businesses are acutely aware of their responsibilities to keep a lid on costs to enable them to ease the burden on customers,"