Family spending power fell again in November, according to the Asda Income Tracker.
The report, which is produced in association with the Centre for Economics and Business Research (Cebr), found that there was a £6 a week year-on-year decline in family spending power even though gross incomes were 2.3 per cent higher over the same period.
Asda and Cebr’s research indicates that the cost of essential goods and services was 3.5 per cent higher in November 2010 than the same month in 2009, but the average family only had £174 to spend each week.
The tracker also suggested that the main contributing factor putting downward pressure on family spending power during the month was transport, with an AA study showing the cost of unleaded petrol rose 9.6 per cent over the course of the year.
Of course, fuel price increases are not just a problem for consumers.
Retail Business Unit Director at supply chain services firm Norbert Dentressangle Peter Fuller told Retail Gazette this month that the rising price of fuel is also “an ongoing challenge” for transport and logistics businesses working in retail.
Commenting on the income tracker, Asda President and CEO Andy Clarke said: “2010 has shaped up to be a challenging year for families up and down the country.
“According to the latest income tracker, this is the 11th month of consecutive decline in disposable income.
“As we approach the new year and the imminent VAT increase, family spending power is going to remain under considerable pressure.”
Charles Davis, the economist at Cebr who compiles the report for Asda, added: “For many households growth in income has once again failed to keep up with the rising cost of essentials.”