Fuel and travel costs are pushing prices up again
Thursday 5 November 2026
Inflation has risen to 3.1%, meaning everyday spending is getting more expensive just as household budgets are already under pressure.
What it means
“Aggregate” means added together. Aggregate demand looks at spending across the whole economy, rather than demand for just one product. It includes spending by households, businesses and government, as well as demand from buyers abroad. When people and organisations spend less, businesses may make and sell less.
Example
If households cut back on shopping and businesses postpone buying new equipment, demand across the economy may fall.
Why it matters
Changes in overall spending can affect jobs and production. If demand rises faster than businesses can keep up, it can also put pressure on prices.
Related terms
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Aggregate supply
The goods and services businesses across an economy can and are willing to provide.
Read more -
Economic growth
An increase in the goods and services an economy produces over time, after allowing for changing prices.
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Inflation
A general rise in prices over time.
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Output gap
The estimated difference between what an economy is producing and what it could sustain using its workers and equipment normally.
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Keep in the loop
News
Highlights from about the UK economy, the UK government and the UK public sector.
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Energy bills are going up as winter approaches
Wednesday 4 November 2026
A higher energy price cap means many households will be paying more to heat and power their homes during the colder months.
Guides and insights
Analysis
Clear, accessible analysis of the economic issues shaping everyday life
Living standards
What does a day’s work buy?
Comparing the cost of everyday life across generations, from bread and beer to buying a home.
Food & prices
The journey behind your grocery bill
How farming, energy, transport and supermarket competition shape the price on the shelf.
Prices & inflation
Inflation is falling. What happens next?
What slower price rises mean for wages, purchasing power and economic recovery.
Shared prosperity
What would shared prosperity look like?
Beyond GDP: how we could measure economic success through security, opportunity and living standards.
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