The latest Asda Income Tracker has revealed that family spending power increased by £3 a week compared to last year. The rise was driven by a fall in the rate of essential item inflation to 1.9%, the lowest rate in four years.

Key figures include:

• The average UK family has £160 a week of extra spending money after taking bills and essentials into account

• Inflation has fallen to 1.9% – the first time inflation has dropped below 2% in over 4 years – helping to keep costs down

• Petrol and diesel costs have fallen by 1.8% since last year and food price inflation is low at 2%

• Energy bills rises, while still putting pressure on household finances, are slowing down thanks to new measures introduced by the Coalition Government

• Pay has grown by 1%

Find out more about what Liberal Democrats are doing to help you with the cost of living at libdems.org.uk.