In order to calculate the rate of inflation, the Office for National Statistics (ONS) records and analyses a basket of everyday goods and services, looking at the prices offered by retailers to calculate the monthly rate of inflation.
There are currently 752 items in this basket that are meant to reflect the way the public spends its money, so as fashions and trends change so do the items used to calculate the rate of inflation. This year 23 old items have been removed whilst 15 new items have been added to the basket, and you can get an insight into an economy beyond mere prices when looking at what has been included.
This year virtual realty headsets, men’s pool sandals, pulled pork and yoga mats have all made it onto the list of everyday goods. However, DVD rentals, hand sanitiser and advertising in local papers have been dropped as fewer and fewer people buy these items.
Getting the balance of the basket is important as the results of the inflation analysis impact on out how much benefits, pensions and train tickets are likely to go up by.