The latest Asda Income Tracker shows that household disposable income has marginally returned to annual growth for the first time since October 2021.
In April, the amount households had to spend on themselves after paying taxes and essential bills, was up by £0.37 a week compared to the same period a year earlier. Whilst a small rise, it ends seventeen consecutive months of annual contractions.
However, despite a slight easing of inflation and the return to annual growth, Asda noted that the cost of living crisis hasn’t yet peaked, as household disposable incomes continued to fall on a month-by-month basis, down from £210 per week in March to £207 per week in April. This was driven by inflation in key categories such as energy and food.
The tracker also reveals that all age groups saw their annual gross income increase in April. Those aged 75 or over experienced the fastest growth in income, with average gross incomes increasing by a huge 7.3% due to the recent uplift to the state pension. Further policy changes, such as the National Living Wage, have led to gross income growth across all working age households.
Younger households spend the most and continue to experience the most shortfall, with a significant 3.4% decline in disposable income for those aged 30 to 49. However, these households are expected to return to income growth once inflation subsides.
Asda continues to support families during the cost-of-living crisis by keeping prices in check and launching new propositions to provide customers with more value each time they shop.
