Families' disposable income fell for the ninth consecutive month during September, research indicated today.
The typical family was £4 a week worse off during the month than they were in September 2009, with £177 left to spend at the end of each week instead of £181 last year.
The fall was caused by take-home pay failing to keep pace with rising prices and steep increases in the cost of clothes, shoes and food, the report by Asda said.
The overall rate of inflation as measured by the Consumer Price Index was 3.1% during September.
Disposable income was squeezed despite the fact that average earnings growth picked up to stand at its highest level since June last year, and gross pay was 2.6% higher in September than it had been 12 months earlier.
Charles Davis, an economist at cebr who compiled the report for Asda, said: "Family spending power was still down on the previous year in September. The growth in household earnings as the economy recovers from recession is failing to keep pace with rising prices of essential goods and services.
"Soaring global commodity prices and rising world labour costs are starting to feed through into higher essential goods prices in the UK."
