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.
Base effects
The effect an unusually high or low starting figure can have on a percentage change reported later.
What it means
Inflation is often reported by comparing prices with the same time a year earlier. If prices jumped sharply at that earlier point, the next year's comparison starts from a high level. The reported inflation rate can then fall sharply even if prices have not fallen. This is often called a base effect: the result partly reflects the price used as the starting point.
Example
A basket costs £100, then jumps to £120 a year later, giving 20% inflation. If it still costs £120 the following year, the new yearly rate is 0%. The basket has not returned to £100.
Why it matters
A falling inflation rate can sound like prices are reversing when the change mainly reflects what happened a year ago.
Related terms
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News
Highlights from about the UK economy, the UK government and the UK public sector.
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Guides and insights
Analysis
Clear, accessible analysis of the economic issues shaping everyday life
Living standards
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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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