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.
Deflation
A fall in the overall level of prices, rather than a fall in just one price.
What it means
Deflation means that prices across a broad range of goods and services are lower than before. It is different from disinflation, when prices are still rising but rise more slowly. One shop reducing a price does not mean the whole economy is experiencing deflation.
Example
If a representative basket of goods and services costs £100 one year and £98 the next, its price has fallen by 2%.
Why it matters
Lower prices may sound welcome, but prolonged economy-wide deflation can go along with weak spending and falling incomes. The causes and effects matter.
Related terms
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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
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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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