November saw a second consecutive month of rising prices, as reported by Asda’s Income Tracker, with UK families continuing to grapple with inflationary pressures. The latest figures show that the Consumer Price Index (CPI) climbed to 2.6% in November, up from 1.7% in September and 2.3% in October. The main drivers behind this increase were the transport sector and rising costs for clothing and footwear.
The Centre for Economics and Business Research (CEBR), which produces the Income Tracker for Asda, forecasts that inflation will remain above the 2.0% target in the coming months, with energy prices and wage growth expected to contribute to further rises in essential costs.
Despite inflationary pressures, household spending power has continued to improve year on year. In November, average disposable incomes grew by 10.5%, marking the sixth consecutive month of double-digit growth. On average, UK households were £23.74 better off per week compared to the previous year, leaving them with £249 to spend on non-essential items after paying bills and essentials. This provides some relief for families heading into the festive season.
Commenting on the latest Income Tracker data, Sam Miley, Managing Economist and Forecasting Lead at CEBR, said: “November’s Income Tracker revealed a slowdown in growth, driven by rising inflation. However, spending power continues to increase, with the Tracker showing double-digit growth for the sixth consecutive month. Household spending power has improved steadily throughout the year, which is a positive ahead of Christmas. Nevertheless, consumer expenditure this festive season is expected to fall short of pre-pandemic levels due to high inflation and the lingering effects of the cost-of-living crisis.”
With Christmas approaching and many families tightening their budgets, Asda is helping with their Christmas shopping by offering the lowest-ever prices on seasonal vegetables. Until Christmas Eve, customers can buy 1kg of carrots, 500g of sprouts, 360g of broccoli, 500g of parsnips, and, for the first time, 2kg of potatoes—all for just 8p each, with no loyalty card required.
Asda has also extended its support beyond the aisles with its popular £1 ‘Winter Warmer’ meal deal in the café, available to customers aged 60 and over. This initiative aims to assist those facing increased financial pressures during the colder winter months.
In conclusion, while inflation continues to present challenges, the improvement in household incomes provides some hope as families prepare for the festive season. However, the rising cost of living is still likely to impact overall consumer spending.
