Inflation: Alcopops out and frozen berries in of cost of living measure

1 year ago 20
ARTICLE AD BOX

Woman making a smoothieImage source, Getty Images

By Kevin Peachey

Cost of living correspondent

The shopping habits of clean-living consumers are reflected in changes to the basket of goods and services used to calculate the rising cost of living.

Alcopops have been removed and frozen berries, used to make fruit smoothies, are included, the Office for National Statistics (ONS) has said.

Electric bikes have also been put into the virtual basket and digital compact cameras removed.

Thousands of prices are collected to calculate the rising cost of living.

The so-called inflation basket contains more than 700 goods and services. The cost of these items in many different outlets are gathered by the ONS to give the monthly inflation figures.

In itself, inflation is an important measure used during decisions about uprating benefits and pensions, and quoted during pay negotiations.

It recently hit a 40-year high but is expected to slow as the year goes on.

As well as reflecting consumer trends and technology, the weighting of different sectors of retail and services is important for an accurate calculation.

The ONS said the removal of alcopops was, in part, the result of restaurants, cafes and pubs being over-represented.

Mike Hardie, from the ONS, said:  "The impact of mobile phone technology continues to resonate with the removal of CDs and digital cameras from our basket, reflecting how most of us listen to music and take pictures straight from our phones these days.

"With many people looking to reduce their impact on the environment, we have also introduced e-bikes, whose popularity has risen significantly in recent years."

Read Entire Article