Asda found that food and fuel inflation were both falling, however, stating that this “should put downward pressure” on the rate of growth for the cost of essentials.

Essential costs rose by 3.6% in July, up from 3.1% in June and marking the first acceleration since March.

According to the tracker, under-30s were hardest hit by essential costs, which accounted for 68.2% of their gross income. Older households saw some of the strongest income growth of all age groups, with gross incomes rising by 4.8% among those aged 65 to 74 and 5% among those aged 75 and over, outpacing all working-age groups.

“Non-energy price growth largely slowed in July, including for several essential categories such as food and transport.”

Sam Miley, head of Forecasting and Thought Leadership at Cebr, reacted to the Tracker, stating: “July was always going to be a difficult month. The Ofgem price cap was reset to reflect price changes in global energy markets, which have been massively disrupted by the conflict in the Middle East. Though the warmer weather may have encouraged less energy consumption, households still faced a significant increase in costs on a per unit basis. This will keep impacting consumers for the rest of Q3.

“Beyond this, there are some more encouraging developments. The price cap will again be reset from Q4, which will coincide with the recently announced tax cut on bills, providing respite for households. Meanwhile, non-energy price growth largely slowed in July, including for several essential categories such as food and transport. The extent to which this continues will be key to the outlook for the Income Tracker.”

The full Income Tracker can be accessed here.