U.K. Adds Craft Beer, e-Cigarettes and Music Streaming to Inflation Basket – Real Time Economics

Growth in the popularity of e-cigarettes has seen them added to the basket of goods used to calculate U.K. inflation.
Zuma Press

Fancy beer, protein shakes and the fees charged for streaming music online have been added to the basket of goods and services used to calculate inflation in the U.K.

The U.K.’s Office for National Statistics routinely overhauls its list of more than 700 items that underpin Britain’s consumer-price index to ensure it accurately reflects households’ changing shopping habits.

The ONS said Tuesday new items added to the national shopping basket include craft beer, gym-goers’ protein powder and refills for electronic cigarettes. Out have gone sat navs, since many drivers now use their smartphones to navigate, and yoghurt drinks, which have faded in popularity.

Other changes indicate Britons are developing a taste for sweet potato and melon as well as rediscovering a love of offal, which hasn’t been included in the basket since 1999.

The CPI is the main measure of inflation in the U.K. The Bank of England is tasked with keeping annual inflation as measured by the CPI at 2%. Inflation has cooled dramatically in recent months due to plunging oil prices but officials expect it to begin accelerating back to target over the next year or two.

 


 


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17 March 2015 | 12:34 pm – Source: blogs.wsj.com

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