Inflation may have fallen from its double-digit highs but is still expected to remain above the Bank of England’s 2% target into 2026, which will impact household bills.

Forecasts from the Office for Budget Responsibility (OBR) suggested wage growth and energy price volatility could keep inflation, which measures the cost of living, “higher for longer”.

Inflation was measured at 3.6% in October, said MoneyWeek , suggesting it “may have peaked in 2025”.

But lower inflation doesn’t mean prices are falling, said Big Issue , and many people are still “feeling the impact of the cost of living crisis”. Announcements in the Autumn Budget may also impact individual household finances.

Wages

Household budgets could get a boost from pay rises in 2026. The government has confirmed a 4.1%

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