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.
Windfall profits
Profits that rise unexpectedly because of an outside event rather than a planned improvement by the business.
What it means
A windfall profit is an unusually large gain that a business did not expect, often after a sudden change in circumstances such as a jump in world prices. The business may still have made investments and taken risks; “windfall” describes the unexpected part of the gain, not a claim that it did no work. Deciding how much profit counts as exceptional requires a comparison with what would normally have been expected. Governments sometimes propose a special tax on these gains, but that tax is a separate policy choice.
Example
Imagine an energy producer selling at a much higher world price after an unexpected supply shock, while the cost of producing its existing output has not risen as much. Its profit may jump for reasons outside its own decisions.
Why it matters
It helps distinguish a sudden gain caused by outside events from ordinary profit growth when debating prices and taxes.
Related terms
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Capital gains tax
A tax that may be due on the gain when someone sells or otherwise gives up an asset that has risen in value.
Read more -
Economic rent
An earning above the amount needed to keep a person or resource in its current use.
Read more -
Market power
A business's ability to influence prices or conditions because customers or suppliers have limited alternatives.
Read more -
Wealth tax
A proposed or existing tax on the value of wealth someone owns, often after subtracting debts.
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
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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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