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The squeeze is on

The economic crisis has left the average British family with only £162 of disposable income, according to the latest Asda Income Tracker.

That’s down by £60 on a year ago – a decline of 7.9 percent.

The Tracker blames the squeeze on the rising costs of basic things, like gas and electricity. In August, electricity was around 5.1 percent higher than a year ago, with gas prices 8.3 percent higher.

Inflation is expected to rise in September, and several utilities companies are planning to increase prices yet again, so brace yourself for things getting worse before they start to improve/

Transport costs also put pressure on the inflation rate, and as the cost of diesel having risen 45.8 percent and car insurance 74.7 percent, there’s no surprising that we are experiencing the largest drop in the standard of living since the 1870s.

Andy Clarke, president of Asda, said: ‘The true cost of living is now beginning to take its toll. Inflation is rising twice the rate of earnings, petrol prices are at a record high and utilities bills are only getting steeper – all adding up to a £14 a week hole in people's pockets.’

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