💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Smoothies in, alcopops out as UK updates inflation index for 2023

Published 03/13/2023, 05:39 AM
Updated 03/13/2023, 05:40 AM
© Reuters. Fruit is displayed for sale on a stall in Lewisham Market, south east London, Britain, March 9, 2023. REUTERS/Hannah McKay
AMZN
-

By David Milliken

LONDON (Reuters) - Frozen berries used to blend home-made smoothies are in, while alcopops at the pub are out, according to Britain's annual update of the goods and services used to calculate consumer price inflation (CPI) data.

The changes set out on Monday by Britain's Office for National Statistics (ONS) offer an insight into shifts in the public's spending choices as tastes and technology change.

The ONS said it will no longer collect prices for small digital cameras or some types of compact disc or DVD, as more Britons use their mobile phones to take photos and stream music and video.

However, battery-powered electric bikes and home security cameras similar to Amazon (NASDAQ:AMZN)'s Ring video doorbells will join the index, the ONS said.

"The impact of mobile phone technology continues to resonate with the removal of CDs and digital cameras from our basket, reflecting how most of us listen to music and take pictures straight from our phones these days," ONS statistician Mike Hardie said.

Inflation is high on the public's agenda, after surging energy prices pushed CPI to a 41-year high of 11.1% in October.

Prime Minister Rishi Sunak said on Friday that controlling inflation would be one of the main themes of finance minister Jeremy Hunt's annual budget this Wednesday.

The ONS will also massively expand the number of rail fares it checks to calculate average price rises. In future it will use an industry database with 30 million price points rather than an index calculated by a regulator.

© Reuters. Fruit is displayed for sale on a stall in Lewisham Market, south east London, Britain, March 9, 2023. REUTERS/Hannah McKay

In total, the ONS said it was adding 26 items to the CPI basket and removing 16, while 717 will be left unchanged.

Among the additions are tortilla wraps, green beans, men's belts and mouthwash. Leaving the index are cooking apples and super-king-size cigarettes - though other types of apple and cigarette will remain.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.