Disposable incomes of UK families falls as costs rise
The growth in family discretionary income has continued to slow, with inflation hitting a two-year high of 1.2% last month, a report has found. Families across the UK still enjoyed £202 of discretionary income last month - £9 or 4.5% more than the same time last year - but this was the third consecutive month of single-digit spending power growth, according to Asda's Income Tracker.
The rising cost of fuel, up 7.4% year-on-year, was once again one of the main contributors.
Inflation was up 0.3% compared to October, attributed to clothing and fuel costs along with various service increases including utilities, restaurant visits and hotel stays.
However, air fares bucked the trend, meaning Christmas flights will be cheaper this year than last despite higher fuel prices.
Deflation in the price of food, down 2%, and mortgage interest repayments, down by 6%, also helped counter the inflated fuel prices.