Business
Economy
Calculating Inflation
Takeaways go into the RPI basket Takeaway caffe latte
makes an appearance in the Retail Prices Index (RPI)
for the first time while brown ale goes back on the
shelf, to reflect changing tastes and spending patterns.
The RPI basket of goods and services will widen its
range of takeaway products and include dried potted
snacks. It will also now track prices for diet aid
drink powder and slimming clubs as people check their
scales.
Today's high-speed lifestyle, with increasing use
of takeaways and convenience foods, plus the growth
of high street coffee shops, is changing the items
priced each month and used by the Office for National
Statistics (ONS) to compile the RPI - the main measure
of inflation. Len Cook, the National Statistician,
said: "Households appear to be changing their
eating habits to cope with busy lives, changing tastes
and leisure patterns."
The changes feed into the February RPI figure, which
is due out tomorrow. They form part of an annual exercise
by ONS to ensure the basket of goods and services
in the RPI is up-to-date and representative of consumer
spending. Consumers are also spending more on leisure
activities and some personal care products, and in
response to this the RPI will now also include golf
green fees, horseracing admissions, hair and shower
gel.
The prices for a number of goods and services will
no longer be sampled every month. Out of the basket
go brown ale, frozen fish in sauce, vinyl floor covering,
fixed telephone handsets, women’s slips and
lead replacement petrol. With a washing machine in
most homes, and shoes increasingly replaced rather
than repaired, laundrette charges and women’s
shoe repair no longer justify their place in the basket.
All these changes form part of the annual review of
the ‘basket’ of 650 goods and services
that are sampled every month to see how prices are
changing.
New items are added to the basket to represent new
or increasing areas of spending, while other items
are deleted as spending on them falls. In Out Food
Round lettuce Frozen fish in sauce Dried potted snack
Tinned spaghetti Diet-aid drink powder Catering Takeaway
caffe latte from coffee shops Takeaway burger in bun
Takeaway kebab Alcohol Draught premium lager Brown
ale Household goods.
Flat pack bookcase Vinyl floor covering Fixed telephone
Complete dry dog food Dog mixer Single serve cat food
Dry cat food Annual booster injection for dog Cat
litter Household services Women's shoe repair Laundrette
charge Clothing and footwear Women's slip Men's belt
Personal goods and services Designer spectacles Battery
powered clock Dental insurance Silver charm Hair gel
Shower gel Slimming clubs Motoring expenditure Automatic
car wash Lead replacement petrol Fares and other travel
costs Air fares Leisure goods Car CD/radio autochanger
Electronic keyboard Decorative outdoor plant pot Leisure
services Golf non-member green fees Horseracing admissions