Working families continued to feel the pinch in April, despite inflation easing to 2.8% – its lowest level in 13 months – according to the latest Asda Income Tracker.
While price rises slowed for all households during the month, the cost of essentials continued to outpace earnings growth for the third consecutive month, leaving working families (aged 30-49) worse off than they were at the start of the year and facing careful choices about how to stretch their budget.
The Income Tracker revealed that:
-
Inflationary pressures linked to the conflict in Iran continued to impact household budgets, particularly through fuel and energy costs.
-
Fuel inflation accelerated sharply from 4.9% in March to 23.0% in April, while heating oil prices were 129.6% higher than a year earlier.
-
The lowest earners faced a weekly shortfall of £75, leaving the gap in spending power between the highest and lowest earners to widen by an estimated £18.75 per week over the past year.
-
Younger households remained under the greatest pressure, with under-30s spending 68.2% of their income on essentials in April – the highest proportion of any age group – driven in part by rising rental costs.
-
Working families aged 30 to 49 had the highest gross incomes at £1,412 per week, but also faced the highest costs, spending an average of £817 a week on essentials and £291 on tax.
The latest figures come as Asda continues to invite customers to “Take a Fresh Look”, with major changes across stores focused on delivering greater value and improving the shopping experience.
Hundreds of everyday products customers buy most often – including beef mince, sausages, eggs and baked beans – have been cut to a new lower Asda Price, with further reductions planned in the coming weeks.
The cuts build on Asda’s position as the UK’s lowest-priced full-range supermarket, with thousands of products already priced below equivalents at Tesco, Sainsbury’s and Morrisons.
An Asda spokesperson, said: “While cost of living pressures eased slightly in April, many families are still notably worse off compared to six months ago and continue to feel the strain financially. We’re here to support them and recently launched ‘Take a Fresh Look’ to focus on the things that matter most – lower prices and greater choice in the areas they shop the most, with additional savings through an enhanced Rewards programme.”
Reacting to this month’s Income Tracker, Sam Miley, Head of Forecasting and Thought Leadership at Cebr, said: “Following the initial impacts of the war in Iran being felt in March, the Asda Income Tracker experienced a recovery in April. With the most recent labour market data showing persistent slack, growth was driven by cooling inflation. Consumers will have welcomed the lower Ofgem price cap for Q2, freeing up discretionary income by reducing energy bills. However, inflationary pressures from the ongoing energy crisis remain, particularly when household energy prices are recalibrated in July.”
Comments are closed.