The average UK household is £7 a week worse off, with the year-on-year cost of living rising 5.2 per cent, according to figures from Asda.

Asda’s economic welfare tracker showed that, in February, gross income growth began to slow – it increased just 2.6 per cent – while the price of transport, food, non-alcoholic drinks and clothing are increasing ahead of incomes.

The cost of housing fuel and power rose 3.5 per cent over the 12 months to February.

Asda chief executive Andy Bond said: “In light of February’s data, our priority must be to keep inflation at bay. The challenge for us and our suppliers is to ensure that we don't pass on unnecessary cost increases to customers.”

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