Family finances flying high
Asda’s latest Income Tracker has revealed that airfares were 5.3% lower in April than they were a year ago, helping Brits to pocket an extra £17 in time for their summer getaways.
The average UK household had £187 a week of discretionary income in April 2015, up by £17 a week on the same month a year before
Airfares were 5.3% lower in April than they were a year ago
The typical basket of food and non-alcoholic drink was 2.8% cheaper
Home electricity, gas and fuel also saw a 2.8% decrease in price
386,000 more people employed than a year ago
British Summertime is off to a flying start as Asda’s latest monthly Income Tracker revealed that Brits had an extra £17 a week in their pockets in April this year. Families across the UK now have £187 a week to spend on the things they want, rather than the items they need, which is just over 10% higher than this time last year.
British holidaymakers can bask in the news that airfares this April were 5.3% lower than they were a year ago – freeing up some extra cash for holiday treats (or even for the duty-free!) Upon arrival, families can splash the cash, with a strong Pound providing an even stronger incentive to travel. In fact, Brits are almost €50 better off than this time last year according to Asda’s latest findings.
For those planning a ‘staycation’ this summer, there is more good news as the typical basket of food and non-alcoholic drink is now 2.8% cheaper than it was at this time last year. Brits spending the summer on home turf will also be encouraged to light up their barbeques as home electricity, gas and fuel also saw a 2.8% decrease in price.
Falling prices of these essentials (food, gas and electricity,) have been key factors in the sharp fall in inflation seen since the middle of 2014. The UK has now fallen into deflation for the first time in 55 years and unemployment has been steadily decreasing, with 386,000 fewer people unemployed than a year ago. Asda’s latest Income Tracker certainly spells good news for hard-working Brits and their families.
Commenting on the findings, President and CEO of Asda, Andy Clarke, said: “During my 30 years in retail this is the first time I’ve seen essential item deflation and I know this will be welcomed by those stocking up their cupboards. What I’m seeing in my stores is a customer who’s better off financially than twelve months ago, but one who is still battle scarred and choosing to save rather than spend on those extra treats”.
Sam Alderson, Economist, Cebr, said: “With inflation turning negative in April, concerns have once again been raised about the effect of deflation on the UK economy.”
“However, negative inflation is largely expected to be temporary. As such, the significant increases seen in household spending power should provide the economy with a major boost in 2015. In that sense deflation has helped rather than hindered the UK’s economic recovery.”