60% of UK households saw lower income growth despite Asda’s record high income tracker

  • Over 60% of UK households experienced a decrease in disposable income in December
  • Lowest-earning families faced a deficit of £70 per week
  • Average household had £251 left after bills and essential expenses
  • CEBR predicts further improvements in 2025 due to real earnings growth

Over 60% of UK households experienced a decrease in disposable income going into the new year, according to Asda’s recent income tracker. Despite hitting a record high and signifying solid growth in spending power, income growth trailed behind annual inflation at 2.5% in December (CPI). Lower-income families faced a deficit of £70 per week, with essential expenses not being covered by take-home pay. The average UK household had £251 left after paying bills and necessities, up 12.1% compared to the previous year. Asda’s figure was the highest recorded by its tracker, attributed to strong wage growth and a slowdown in inflation. However, CEBR’s managing economist Sam Miley predicts further improvements in 2025 due to real earnings growth.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the decline in disposable income for UK households, citing sources such as Asda’s income tracker and the Consumer Prices Index (CPI). It also includes expert opinions from a managing economist at CEBR. However, it could provide more context on the cost-of-living crisis and its impact on different income groups.
Noise Level: 3
Noise Justification: The article provides relevant information about the decline in disposable income for UK households and mentions the impact on different income groups. It also includes expert opinions and predictions for future improvements. However, it could benefit from more detailed analysis of the causes and consequences of this trend and potential solutions.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses the decline in disposable income for over 60% of UK households and its impact on their spending power. It also mentions inflation rates and wage growth, which are financial topics. However, it does not directly mention any specific financial markets or companies being impacted.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

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