The ONS has updated the basket of goods it uses to calculate price inflation. 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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