Rising food costs are adding pressure to consumers, with 60% of UK households reporting a decrease in weekly disposable income in August, according to the latest figures from Asda’s Income Tracker.

Food inflation rose for the fifth consecutive month to 5.1% in the year to August, driving a gap between earnings and spending on everyday essentials.

Lower-income households were the most affected, with spending money decreasing by 11.6% in the lowest income quintile.

Middle-income households experienced their second consecutive month of reduction in discretionary money, and more declines are expected if inflation continues.

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However, high-income households were not impacted, with wage growth being higher than inflation.

Sam Miley, head of forecasting and thought leadership at Cebr, said: “The Income Tracker showed its weakest annual growth in over two years in August, as inflation remained sticky at nearly twice the Bank of England’s target.”

“The fact that inflation is concentrated in essential spending categories is bad news for consumers, who are seeing more of their post-tax income covering food and household bills. Looking ahead, there is a risk that the Income Tracker starts to decline as we head into the crucial fourth quarter, presenting a risk to business health too,” Miley added.