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.
Aggregate supply
The goods and services businesses across an economy can and are willing to provide.
What it means
“Aggregate” means added together. Aggregate supply looks at production across the whole economy, not just one business. What can be provided depends on things such as workers, materials, equipment and how efficiently they are used. In economic models, the amount businesses are willing to provide can also change as prices change.
Example
If a shortage of energy stops many businesses from making as much as before, the economy may be able to supply less even if customers still want to buy.
Why it matters
When demand is strong but the economy cannot provide more goods and services quickly, prices may rise rather than production.
Related terms
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Aggregate demand
The total demand for goods and services made in an economy.
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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.
Mortgage relief will have to wait a little longer
Wednesday 4 November 2026
Interest rates are staying at 3.75%, so households with mortgages and other borrowing may have to wait longer for costs to come down.
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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