The Office for National Statistics (ONS) has conducted its annual review of the basket of goods and services, a crucial tool for measuring inflation in the UK. This year, 23 new items have been added, while 15 have been removed, reflecting the changing consumer preferences and spending habits. Among the new additions are virtual reality headsets and air fryers, indicating a growing interest in emerging technology and convenient cooking methods.
The basket of goods and services, which now contains 752 items, is used to provide an accurate cross-section and weighting of spending data. It represents a wide variety of products and services whose prices are collected from multiple retailers to calculate monthly inflation figures.
Virtual reality headsets have made their debut in the basket, highlighting a shift towards technological advancements. The ONS anticipates that consumer expenditure on VR headsets will increase from £347 million to £520 million by 2029.
"The addition of virtual reality headsets for the first time shows our appetite for emerging technology," said Stephen Burgess from the ONS.
In addition to VR headsets, air fryers have been introduced into the basket, showcasing their rising popularity as a healthier cooking alternative. Meanwhile, mangoes have been added to the selection of fruits, and cushions have been included to enhance the representation of soft lounge furnishings.
On the other hand, the decision to remove hand sanitiser from the basket reflects a decline in its demand compared to its peak usage during the pandemic. Anecdotal evidence suggests that hand sanitiser sales are now primarily conducted through online platforms.
"Our inflation basket of goods shows how consumer spending has evolved over the years," stated Stephen Burgess from the ONS.
This yearly review by the ONS ensures that the basket remains relevant and accurately represents consumer spending patterns. By adapting to current trends, it captures the dynamic nature of consumer behavior and its impact on inflation.