Average Family Now £12 Better Off

• News
• Published: 21 Jul 2009 in Money and Current Accounts

Lower interest rates have made the average family £12 a week better off than they were in June last year, research showed.

Asda said a typical household had £164 a week of discretionary income in June 2009 - a 7.8% increase on the same time in 2008.

The extra cash was attributed to falls in borrowing costs by the supermarket, as well as the lowest food and drink inflation since November 2007 and inflation on utilities being at its lowest since April 2008.

The report said in June, gross income rose £10 a week compared with a year earlier, and average family incomes rose by £7 a week after tax from the previous year.

However, on the consumer price index, inflation fell to its lowest level in 21 months, and there was a record year-on-year drop in prices on the retail price index.

Charles Davis, an economist at the Centre for Economics and Business Research, said: "This month's year on year comparison is exaggerated somewhat by base effects from June 2008 when prices were rocketing. But nevertheless the Asda income tracker shows how interest rate cuts are helping households."