Asda calls for retailers to keep costs down for consumers |
| Industry News | |
| Tuesday, 24 November 2009 | |
 Asda has called for retailers to keep costs down for consumers over Christmas as it forecast a renewed squeeze on discretionary income in the months ahead.Andy Bond, Asda president and chief executive, said: "Although we are seeing a rise in some household essentials, it's up to retailers to try and keep prices as low as possible for customers during the countdown to Christmas." According to the latest report from the Asda Income Tracker, the average UK family is £10 a week better off compared to October 2008 with an average discretionary income of £162m a week. However, in cash terms Asda said discretionary income has been flat for the last three months. Asda said several factors were putting downward pressures on discretionary incomes, and it predicted a fall in the tracker over the coming months. Transport costs have increased 3.5% year-on-year-and food and drink inflation has risen over the last 12 months. The annual rate of inflation increased to 1.5% in October, up from 1.1% in September. This is the first rise in the annual rate of inflation in seven months and the most significant rise since September 2008. Charles Davis, an economist at Cebr, which compiles the report for Asda, said discretionary income growth had slowed in the last two months. He said increasing food and transport costs coupled with weak earnings growth had hit consumers' spending power.
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