The average London family is now better off than they were before the pandemic, according to the latest Asda Income Tracker.
Londoners’ average household disposable income rose to £351 per week in quarter two of this year – 3% up on the pre-pandemic peak of £340 in March 2021, following above average wage growth in the capital.
The figure is £114 a week more than the amount the average UK family is left with after paying bills and essentials, which stood at £237 per week during the quarter, according to the supermarket giant’s findings.
Only two other regions – Scotland and east of England – had average household disposable incomes above the UK-wide average during the quarter, at £238 and £261 per week respectively.
However, the latest results of the tracker saw disposable income up by 13.5% year on year, the strongest quarterly growth in three years, which was driven by the by sharp slowdown in inflation in the quarter.
Costs came down for essentials including food and non-alcoholic drinks, with inflation in June standing at 1.5% in comparison with 17.3% in June 2023.
Energy prices also fell, further easing household costs.
“A second consecutive month of inflation being at target has helped to support household spending power, given that earnings growth is significantly stronger,” said Sam Miley, managing economist and forecasting lead at Cebr, which produced the Income Tracker on behalf of Asda.
“Though inflation may pick up slightly in the coming months, it is still expected to fall short of income growth for some time. This means that improvements in spending power are set to continue, supporting consumption and the wider economy.”
Asda recently announced that funding of over £1m had been made available via the Asda Foundation in the form of its Investing in Spaces and Places grants, to enable groups across the UK to transform local community spaces.
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