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.
Key term
What it means
The amount on your payslip or in your savings account does not tell the whole story. If prices rise and your money stays the same, you can buy less with it. To compare purchasing power in different years, you need to take price changes into account.
Example
If £100 buys your usual weekly shop this year but the same shop costs £110 next year, £100 has lost some purchasing power.
Why it matters
A salary can increase in pounds while still losing purchasing power.
Related terms
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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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Disinflation
A slowdown in how quickly prices are rising.
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Inflation
A general rise in prices over time.
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Real interest rate
An interest rate adjusted for the change in prices, showing what borrowing or saving costs in purchasing power.
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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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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
Interest rates are staying at 3.75%, so households with mortgages and other borrowing may have to wait longer for costs to come down.
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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