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
Disinflation happens when the inflation rate falls but is still above zero. Prices keep going up; they simply rise more slowly than before. This is different from deflation, which means prices across the economy are falling.
Example
A basket costs £100, then £106 a year later: prices rose by 6%. A year after that it costs £109.18: prices rose by 3% in the second year. The inflation rate fell, but the basket became more expensive in both years.
Why it matters
A fall in the inflation rate is often reported as good news, but it does not usually mean that prices have gone back down.
Related terms
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Base effects
The effect an unusually high or low starting figure can have on a percentage change reported later.
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Deflation
A fall in the overall level of prices, rather than a fall in just one price.
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Inflation
A general rise in prices over time.
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Purchasing power
How much you can buy with a given amount of money.
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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
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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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