Tuesday, January 24, 2023

Money Goes to Money

 Analysts at Retail Economics found that the UK’s least affluent households have almost £40 a month less spare cash than they did a year ago while the richest have gained a similar sum in the same period. 

The differing fortunes recorded on its cost of living tracker reflect a higher rate of inflation of 16.5% for those at the bottom end of the income scale, who spend two-thirds of their income on essentials such as food and energy, compared with 13.3% for those at the top, who spend just under half.

The wealthiest 20% of households had £36 a month more in discretionary income in December compared with a year before, as they enjoyed record earnings growth which offset rising energy and food bills. 

Richard Lim, the chief executive of Retail Economics, said: “...the wealthiest are actually seeing their discretionary spending power rise on the back of record earnings growth, while the least affluent see their spare cash eroded by inflation..."

Poorest in UK have £40 a month less to spare than a year ago, study finds | Family finances | The Guardian

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