British households’ disposable income fell in October and rising inflation may subdue spending this Christmas, supermarket group Asda said on Monday.

Publishing its monthly Income Tracker survey, produced with the Centre for Economics and Business Research, Asda said after paying all taxes and essential bills the average UK household saw its disposable income fall by GBP1.98 ($2.49) in October, leaving it with GBP247 ($310) per week.

The fall for only the second time this year reflected a 2.3% rise in inflation in October, which was primarily driven by higher energy prices.

“These increased energy prices will persist over the rest of Q4, leading to slightly dampened spending power over the festive period,” Sam Miley, managing economist and forecasting lead at CEBR, said.

Official data last week showed UK retail sales fell by much more than expected in October, adding to other signs of a loss of momentum in the economy in the run-up to the first budget of Prime Minister Keir Starmer’s new government on October 30.

Asda’s survey contrasts with recent reports from major UK retailers that have been fairly upbeat about prospects in the run-up to Christmas.

Department store John Lewis said it was “quietly optimistic”, budget fashion retailer Primark said it expected good trading, while both clothing and food retailer Marks & Spencer and supermarkets Tesco Sainsbury’s have forecast strong festive performances.

However, last week sportswear retailer JD Sports Fashion warned annual profit would come in at the lower end of its guided range after a tough October of discounting, mild weather and consumer caution.