Gin, cycle helmets and non-dairy milk have been added to the basket of goods and services used to calculate the consumer price index (CPI) in the annual review by the Office for National Statistics (ONS), with old style mobile phones and apple cider removed
The ONS carries out a yearly update of the items used to create a representative view of consumer spending. It said a number of new items have been introduced ‘to represent specific markets where consumer spending is significant or growing and existing items in the baskets may not adequately represent price changes for such goods.’
For example, non-dairy milk drinks have been added reflecting the distinct and growing market for ‘free from’ foods. The item is intended to capture price movements for milk-type drinks based on, for example, soya or almond. Similarly expenditure on flavoured water has been rising and the product has now been added to the mineral waters, soft drinks and juices part of the baskets.
Gin has been put in the basked in response to a reported increase in the number of small distilleries over recent years. The ONS says its inclusion will help interpretation of the spirits section of the baskets where there is a high degree of price volatility due to periodic discounting. Half chocolate-coated biscuits and cough liquid have been included to expand coverage of biscuits and pharmacy products respectively.
Cycle helmets are now included in a nod to the growing popularity of cycling, along with a base layer top, which the ONS says is widely purchased, and jigsaws to represent an adult-type hobby.
The ONS seeks to limit growth in the overall size of the baskets so that production costs and processing times may be contained. This year these include mentholated cigarettes, which are being banned from 2020. Off sales of bottled apple cider have been replaced by two items: canned apple cider and bottled flavoured cider, and a child’s scooter now replaces a child’s swing, while old-style mobile phone handsets have gone, as have brake pads and the fee for stopping a cheque.
Details of the UK consumer price index basket of goods and services is here.