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.
Recession
A period when economic activity falls; in the UK, two consecutive quarters of falling real GDP are commonly called a technical recession.
Key term
What it means
A quarter is three months. If the economy shrinks in one three-month period and then shrinks again in the next, it meets the common UK test for a technical recession. That test is a useful shortcut, but it does not tell us how severe the downturn is or how long its effects will last. GDP figures can also be revised as more information arrives.
Example
If real GDP falls from January to March and falls again from April to June, the economy has entered a technical recession under that rule.
Why it matters
The word can describe anything from a relatively small fall to a severe downturn, so the size and effects of the decline matter too.
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 -
Real GDP
A measure of a country's production that removes the effect of changing prices.
Read more -
Unemployment rate
The share of people in the labour force who have no job, are looking for one and are available to start.
Read more
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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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