DIYWEEK.net

As consumer price inflation continues to outstrip earnings growth and the average family is £11 a week worse off, consumers rein in their spending and buy into own-brand ranges.
The latest Asda income tracker reported that the average UK household had £166 a week of disposable income in July, down 6.4% on the previous year.

As family finances were squeezed further by increasing transport costs and rises in the price of household goods, shoppers are adapting to tighter budgets and are buying into own-brand ranges, according to a survey conducted on Asda's Facebook page.

Other money-saving tips revealed in the survey includes customers compiling an online product list that fits within their budget, which they then take in store to shop with, and half-filling petrol tanks to avoid wasting money driving with a full tank.

Annual consumer price inflation grew to 4.4% in July, up from 4.2% in June. The figure continues to soar above earnings growth, which rose just 2.6% in the services sector for the year to July and 1.1% in manufacturing over the same period.

Unfortunately, Cebr managing economist Charles Davis believes things will only get tougher for cash-strapped consumers: "Pressure on household finances continued to mount up in July as the cost of essential spending grows rapidly while wage increases remain slow... The Asda Income Tracker shows that family spending power continues to fall from a year ago. With larger-than-usual rail fare increases allowed for next year and utility price rises set to come in over the coming months, the UK consumer still faces tough times ahead."