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.
Gross value added (GVA)
The value a business or industry adds by making goods or providing services, after subtracting what it bought from other businesses to do so.
What it means
A business buys materials and services, then uses them to produce something. GVA looks at the value it creates beyond the cost of those purchases. This prevents the same ingredients from being counted again at every stage. GVA is often used to compare industries or local economies. It is closely related to GDP, but GDP also accounts for taxes and subsidies on products.
Example
A bakery buys flour for £2 and sells the bread it makes for £5. If flour is its only purchased input in this simplified example, it has added £3 of value.
Why it matters
GVA can help show how much different industries or areas contribute, without treating the whole selling price at each stage as newly created value.
Also known as
GVA
Related terms
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Economic growth
An increase in the goods and services an economy produces over time, after allowing for changing prices.
Read more -
Gross domestic product (GDP)
The total value of goods made and services provided within a country over a period of time.
Read more -
Labour productivity
The amount of goods and services produced for each hour worked, or for each worker.
Read more -
Labour share of income
The share of income generated in an economy that goes to people for their work.
Read more
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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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