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Household Spending Squeezed Further As Inflation Bites

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http://www.guardian.co.uk/business/2013/jun/24/inflation-household-spending-squeezed

Household spending power fell further in May as wages struggled to keep up with rising prices, according to a report.

The average UK household had £157 per week of discretionary income in May, down £1 or 0.5% on a year earlier, supermarket Asda's Income Tracker showed.

That remains below the £165 peak seen in early 2010, as higher gas, electricity and water bills heap further pressure on cash-strapped consumers.

And disposable income fell despite an increase in the personal tax allowance – the part of earnings on which no tax is paid – to £9,440 in the current tax year from £8,105 a year earlier.

Shocking news that really no one could have predicted. I'm amazed no one on here hasn't predicted this outcome everyone is usually so on the ball...

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wrong wrong wrong, inflation is all to blame on failed green measures on energy and student fees. Nothing else is going up so confused as to why people are struggling.

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http://www.guardian.co.uk/business/2013/jun/24/inflation-household-spending-squeezed

Shocking news that really no one could have predicted. I'm amazed no one on here hasn't predicted this outcome everyone is usually so on the ball...

How did we miss this, surely all the money printing and low interest rates would hammer down inflation rates.

How ****ing stupid are we. :rolleyes:

Edited by TheCountOfNowhere

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Thanks to a precipitice drop in CPI between May and June 2012, we should have plenty to whinge about come the June 2013 CPI number, next month. Even mild deflation month on month from 226.1 (May)- 226.0 (June) will see the annual rolling hitting 3.0%.

Edited by crashmonitor

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http://www.guardian....ending-squeezed

Shocking news that really no one could have predicted. I'm amazed no one on here hasn't predicted this outcome everyone is usually so on the ball...

It clearly is shocking. Discretionary income has fallen barely at all in nominal terms, and at £600 odd quid a month seems remarkably comfortable.

What I would like to know is how much it would be with interest rates at 5%. Oh, actually, the outstanding mortgages are £1.3e12, so an extra 4% on that is about £200 a month spread over 20e6 families. So on average we'll still be fine. The demographic with above-average mortgages and average incomes (i.e. an awful lot of people who bought in the last 10 years), maybe not so much.

I just hope that discretionary spending for working-age households is defined to be the amount of money left after pension contributions. They seem to have forgotten to include that expense in the definition on wikipedia though ....

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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