UK: Aviva comments on ONS inflation - Our shopping habits are changing: A 10 year trip down high-street history

14 Mar 2017

The ONS has updated the basket of goods it uses to calculate price inflation1. Every month, 180,000 local prices are collected on a basket of 700 items. This is done to identify if prices are rising or falling. A quick look at the changes gives a good insight into our changing shopping habits. 

Items entering the basket this year include non-dairy milk, cycle helmets and jigsaws for adults.

Items leaving the basket this year include mobile phones (replaced with smartphones) and menthol cigarettes.

Year

Items added to basket include

Items removed from basket include

2017

Cycle helmets

Jigsaws for adults

Mobile phones (replaced by smartphones)

Menthol cigarettes

2016

Coffee pods

Computer game downloads

CD Roms

Nightclub entry

2015

E-cigarettes

Streaming music

Yoghurt drinks

Sat Navs

2014

Video on demand

Canvas fashion shoes

After school clubs

Gardeners fees

2013

eBooks

White rum

Freeview boxes

Champagne

2012

Tablet computers

4 cans of stout

Photo developing

Stepladders

2011

Mobile phone apps

Sparkling wine

Provincial newspapers

Vending machine cigarettes

2010

Cereal bars

Lip gloss

Bars of soap

Disposable cameras

2009

Blu ray discs

Parmesan cheese

MP3 players (replaced with MP4)

Large wine box

2008

Pure fruit smoothies

Muffins

CD singles

35mm cameras

2007

DAB radios

Sat Nav

VHS recorders

Portable colour TVs

Commenting on the basket of goods and price inflation, Alistair McQueen, Head of Savings & Retirement at Aviva, said:

“Looking back over the past decade is like a trip down memory lane. Technology has been a big driver of recent changes – gone are VHS recorders and 35mm cameras, arriving are computer game downloads and music streaming services.

“Our shopping habits are always changing, as are the prices of the underlying goods. Inflation however has been a forgotten concept for some time. It has been beneath the government’s target of 2% since December 2013. But times are changing, and price rises are on their way back.

“Price inflation (CPI) is back at 1.8% and is expected to breach 2% this year. This will have implications for our shopping budgets and potentially for interest rates, and people are worried.

“Aviva’s recent Family Finance report2 identified rising prices and unexpected expenses as the joint top threats to people’s standards of living. Careful money management will help people navigate these choppy waters.”

Aviva has a free online budget planner help people manage their money. You can see it here.

 

If you are a journalist and would like further information, please contact: 

Aviva Press Office: Fiona Whytock: 07800 692 299 or fiona.whytock@aviva.com

Aviva’s retirement spokesperson, Alistair McQueen, is available for comment/interview

Sources:

1 https://www.ons.gov.uk/releases/consumerpriceinflationbasketofgoodsandservices2017

2 http://www.aviva.com/media/upload/6882_Aviva_Family_Finance_Report_Winter_2017_secured_Wc2kyib.pdf

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