UK real household disposable incomes fall for the first time: Economics Assignment, HWU, Malaysia
|University||Heriot-Watt University (HWU)|
Responses to rising prices in the UK and Kenya
Extract 1: UK real household disposable incomes fall for the first time in 30 years Real take home pay in the UK fell for the first time in three decades after prices rose faster than incomes in 2010, dealing a further blow to the prospect of an economic recovery. Less than a week after George Osborne, the Chancellor of the Exchequer, downgraded the UK’s growth forecasts for 2011 in his budget presentation, figures revealed that real household disposable incomes dropped by 0.8% in 2010, according to the Office for National Statistics (ONS).
The figures also showed that the decline is likely to accelerate to about 2.0% in 2011 and flatten in 2012 as the biggest public spending cuts since the Second World War take effect. “Rising commodity prices and the increase in sale taxes mean inflation is high and outpacing pay growth, putting a squeeze on real disposable income”, according to research group Capital Economics.
Last year’s decline in real disposable income is the first time since 1981, and is the biggest decline since 1977, when it fell by 2.2%, according to the ONS. In 2009, real disposable incomes rose by 1.1%.
Are You Searching Answer of this Question? Request Malaysian Writers to Write a plagiarism Free Copy for You.
The repercussions of rising inflation and stagnant wages were further underlined with the release of a separate report showing the first decline in grocery sales, in real terms since July 2009. In the past month, the annual growth rate in average profits in the food retail sector has fallen by a third to 2.6%. A market research company said “there are now clear indications that value for money is driving retailer performance,” with discount stores such as Aidi and Lidi showing increases in sales of their own-label products despite declining real disposable incomes.
A senior economist at HIS Global Insight said: “I’m not surprised at all by these grocery figures, which carry on a general trend – an increasingly sorry tale across the retail sector. People are having their purchasing power squeezed by current inflation levels and limited wage growth,
while they are increasingly worried about their jobs. A lot of people can’t afford to spend so much, while those that can are becoming cautious.” Earlier this month, the UK chief executive of the supermarket firm Tesco said consumers were struggling because of the unrelenting rise of fuel prices, as well as other rising household costs.
Get Solution of this Assessment. Hire Experts to solve this assignment for you Before Deadline.
Get Help By Expert
At Assignmenthelper.my, we have a group of professional academic writers that provide excellent assignment assistance to students who are in need of it. Our essay writing service is well-known for providing high-quality custom-written essays at very affordable prices.
Recent Solved Questions
- Mathematics Assignment, MMU, Malaysia Solve the following pair of simultaneous differential equations
- Marketing Management Essay, HWU, Malaysia Is Tom’s of Maine toothpaste really green if consumers leave the water running while they brush their teeth
- Issues In Global Business Assignment, MUM, Malaysia Multinational corporations are increasing major risks multinational corporations face opportunities but pose
- UNGS2060 Malay Virtues Heritage & Malaysian Society Research Paper, IIUM, Malaysia Discuss the circumstances that led to the spread of Islam in the Nusantara
- BBCE3013: Analyze and describe clearly the proposed issue or problem using appropriate tools or any relevant materials such as graphs: MALAYSIAN ECONOMY Assignment, OUM, Malaysia
- Business Statics Assignment, SU, Malaysia In 2004, ratings are compiled concerning the performance of new cars during the first 100 days of use
- BBBL2074: Business and Corporate Law Assignment, TARC, Malaysia Olive Foods Sdn. Bhd. is a relatively small company incorporated in Malaysia having its business premises in Rawang
- BNNS 6274: Orthopaedic and Neurovascular Nursing Assignment, LUC, Malaysia Malaysia has a higher prevalence rate of osteoporosis. The prevalence of osteoporosis is projected to be higher
- Common Law Course Work, MMU, Malaysia The ideological power of the jury system should not be underestimated
- Innovation Management Report, UniKL, Malaysia As a creative director of a new fashion company, you are required to create one fashionable product