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
Nominal wages are the amounts of pay shown in money. A rise in nominal pay means the pound amount has gone up. It does not tell you whether that pay buys more than before; to see that, you need to account for inflation and look at real wages.
Example
If weekly pay rises from £500 to £520, nominal wages have risen by 4%. If prices rise faster than 4%, that pay buys less despite the rise.
Why it matters
A bigger payslip is welcome, but price rises can reduce the gain or wipe it out.
Also known as
money wages
Related terms
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Inflation
A general rise in prices over time.
Read more -
Real terms
A way of comparing money in different years after allowing for changes in prices.
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Real wages
Pay measured by what it can buy after allowing for changes in prices.
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Wage growth
How much pay has risen or fallen compared with an earlier time.
Read more
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News
Highlights from about the UK economy, the UK government and the UK public sector.
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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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