(Dec 22): Easing UK inflation is putting extra money in consumers’ pockets ahead of Christmas, with last-minute shopping also boosting footfall.
British families’ spending power rose for a third month to £257 per week on average, a £5.67 increase from a year earlier, according to supermarket chain Asda’s latest income tracker. The data was gathered by the Centre for Economics and Business Research, a UK consulting firm.
At the same time, footfall to retail parks and shopping centres rose 7.3% and 5.4% week-on-week in the seven days to Dec 20, data from MRI Software showed, though numbers were slightly below last year’s levels.
Retailers are hoping shoppers will get back to spending after Chancellor of the Exchequer Rachel Reeves decided not to raise income tax in her November budget. Price inflation in British shops eased to the lowest level in five months in November, according to the British Retail Consortium, as retailers rolled out Black Friday deals earlier than usual to entice customers.
Still, low-income households are feeling squeezed at this time of year, with many remaining £72 short of covering essential bills, the Asda income tracker showed. Those families are worse off compared to 12 months ago, with housing and utility bills the largest contributors to inflation.
Price growth is expected to continue to ease in the new year, but that will be offset by weaker pay growth, according to the Asda report.
See also: UK saving ratio dips to 9.5% as households hit by tax hikes
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