Spending power among 60% of UK households fell for the fourth consecutive month in October, according to the latest figures from Asda’s Income Tracker.

The essential basket price from Asda’s Income Tracker increased by 4.6% year-on-year and showed that households between the ages of 30 and 49 were faced with the highest essential costs at £799.

The data found that nearly 20% of households that earn £11,000 a year or less had a £74 shortfall each week.

Additionally, 40% of households earning £25,000 a year had only £10 as discretionary spending after paying for essentials.

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Sam Miley, head of forecasting and thought leadership at Cebr, said: “While the outturn inflation data for October supports Cebr’s view that inflationary pressures have peaked, there remain considerable risks to the outlook for the Income Tracker.

“Worse-than-expected labour market figures for September illustrate that the UK labour market has been weakened by raised employment costs and weak demand.”

Cebr warned that the cost-of-living pressures may increase for customers during the festive season.

Miley added: “Prospects for the UK economy are also not helped by the high likelihood of fiscal contraction in the November Budget. With households and businesses alike nervously waiting to see how much of the fiscal burden will be placed on their shoulders, there could well be risks ahead for the Income Tracker.”