Asda: Families feel the pinch as inflation drives up essential costs
Asda’s Income Tracker supplied by CEBR reveal the cost of essential basket of goods and services rose by 4.2% year-on-year in January.
The cost of the essential basket of goods and services rose by 4.2% year-on-year in January 2025, marking the fastest rise in the cost of essentials since March 2024, according to the latest figures from Asda’s Income Tracker, supplied by CEBR.
Annual inflation reached a ten-month high of 3.0% in January, primarily driven by faster price increases in transport, food, and non-alcoholic beverages.
Staple products such as bread, cereals, and meat saw significant price hikes, putting additional strain on households already feeling the effects of the ongoing cost-of-living crisis.
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While household disposable income reached £254 per week in January – an increase of £25.74 per week year-on-year – gross income growth slowed to 5.2%, down from 5.3% in December due to the uptick in inflation.
The lowest-earning households, which make up around 20% of the UK population, were hit hardest, facing a shortfall of £69 per week in January.
CEBR managing economist Sam Miley said: Although household incomes are still growing at a faster rate than inflation, the acceleration in essential spending costs has reduced the overall spending power for families.
“Looking ahead, inflation is expected to remain elevated throughout 2025, which will continue to place strain on household budgets.”
As the higher costs of essentials squeezed household budgets in January, Asda stressed it “continues to deliver unbeatable value for hardworking families”.
The supermarket recently launched Rollback, cutting prices on more than 4,000 popular products both in stores and online by an average discount of 25%.
Asda executive chairman Allan Leighton said: “Asda was built upon helping hard working families save money and we’re refocussing on that mission by bringing back Rollback and Asda Price.
“We’re lowering prices throughout our stores and online to make Asda the cheapest traditional supermarket and in the process returning to what makes Asda special – delivering unbeatable value to the customers and communities who count on us.”
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