UK | The latest figures from Asda's Income Tracker show that the average household had to spend on themselves after paying taxes and essential bills in November, up by £15.20 a week compared to the same period a year earlier.
This marks the eighth consecutive month of improvement and the highest annual growth rate over two years (since September 2021), with the average disposable income up to £228 in November 2023.
The latest improvement shows that many families' financial burden continued to ease in the run-up to Christmas, which can be attributed to sustained annual gross income growth and a sharp inflation slowdown.
Transport, including fuel, was the main driver of the latest month-on-month inflation slowdown, with prices falling by 1.5 percent in November. The food category also saw growth fall into single-digit territory for the first time since June 2022, at 9.2 percent.
Spending power also continues to grow for many UK households, and it was the highest-earning households that recorded the strongest annual gross income growth for a ninth consecutive month.
Discretionary income for these households was £819 per week in November, a rise of 9.4 percent year-on-year, highlighting the impact of easing inflation and the strong wage growth environment.
Despite these improvements, the tracker indicates that lowest earning households are still bearing the brunt of the cost-of-living crisis with a deficit of £70 in disposable income per week – meaning their take-home pay is insufficient to cover spending on bills and essentials.
