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.
Real GDP
A measure of a country's production that removes the effect of changing prices.
Key term
What it means
GDP is the value of goods and services made in a country. That value can rise just because prices rise. Real GDP adjusts for price changes, so we can better see whether the country actually produced more or less. “Real” means adjusted for prices here; it does not mean other GDP figures are fake.
Example
Imagine a country makes the same amount of goods and provides the same services in two years, but charges more for them in the second year. GDP measured in pounds rises; real GDP does not rise just because prices did.
Why it matters
When the news says the economy grew, real GDP helps show whether more was produced, rather than everything merely costing more.
Also known as
inflation-adjusted GDP
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 -
GDP per person
A country's GDP divided by the number of people living there.
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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 -
Output gap
The estimated difference between what an economy is producing and what it could sustain using its workers and equipment normally.
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Real terms
A way of comparing money in different years after allowing for changes in prices.
Read more -
Recession
A period when economic activity falls; in the UK, two consecutive quarters of falling real GDP are commonly called a technical recession.
Read more
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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