Latest figures from Asda’s income tracker, produced by Cebr on the retailer’s behalf, reveal that 40% of UK households experienced a decline in their spending capacity in June 2025, as inflation reaches a 18-month high of 3.6%.
The primary contributors to the inflation increase are essential items such as food, fuel and utilities.
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The report highlights the lowest-earning households continue to face an 8.1% year-on-year drop in spending power growth, as they allocate a larger portion of their income to essential items.
Cebr forecasting and thought leadership head Sam Miley stated: “Inflation surprised to the upside in June, putting further downward pressure on the rate of growth in the income tracker. The concentration of inflation in essential categories, including food, transport and utilities, is placing households under particular strain. Nevertheless, earnings growth remains robust and is offsetting price pressures for now.”
The regional impact varies, with areas such as the West Midlands witnessing a 0.6% shrinkage in spending power growth, in stark contrast to the 12% growth seen in 2024.
Families in the West Midlands now have an average weekly disposable income of £191 ($256) – significantly lower than the UK average of £250.
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By GlobalDataNorthern Ireland records the lowest disposable income at £129 per week.
London, Scotland, and the East of England report higher disposable incomes, above the UK average, due to stronger job markets and higher post-tax income.
In early July 2025, Asda announced an improvement in its family leave policies, providing its 140,000 employees with increased support during significant life events.
