Author: Kevin Peachey, Cost of living correspondent
Some statisticians are now using yoga mats and virtual reality headsets to track the increasing cost of living. The Office for National Statistics (ONS) includes these items in a basket of 752 goods and services to calculate inflation rates, currently at 3% annually. This figure has significant impacts on interest rates, benefits, pensions, and salary negotiations.
Changes in the Basket
The basket is revised yearly to reflect changing consumer behavior. This year, 23 items were added, including VR headsets and yoga mats, reflecting a trend towards technology and home fitness. On the flip side, items like newspaper adverts were removed due to the rise of online platforms.
The ONS predicts increased spending on VR headsets and the growing popularity of home workout accessories. Changes in the basket reflect evolving consumer preferences and trends, providing insights into our lifestyle and spending habits.
Vocabulary List:
- Statistics /stəˈtɪs.tɪks/ (noun): The practice or science of collecting and analyzing numerical data in large quantities.
- Inflation /ɪnˈfleɪ.ʃən/ (noun): The rate at which the general level of prices for goods and services is rising.
- Consumer /kənˈsjuː.mər/ (noun): A person who purchases goods and services for personal use.
- Preference /ˈprɛf.ər.əns/ (noun): A greater liking for one alternative over another or others.
- Negotiate /nɪˈɡoʊ.ʃi.eɪt/ (verb): To try to reach an agreement or compromise by discussion with others.
- Reflect /rɪˈflɛkt/ (verb): To show or demonstrate something such as a trend or characteristic.
How much do you know?
What are statisticians using to track the increasing cost of living?
How many goods and services are included in the basket used by the ONS to calculate inflation rates?
What is the current annual inflation rate according to the content?
How often is the basket of goods and services revised?
Which item was specifically mentioned as being removed from the basket this year?
What do changes in the basket reflect according to the content?
The ONS includes VR headsets and yoga mats in a basket of goods and services to calculate inflation rates.
Items like newspaper adverts were added to the basket this year.
Changes in the basket do not provide insights into lifestyle and spending habits.
The ONS predicts decreased spending on VR headsets.
Interest rates are not impacted by the inflation rate.
The trend towards technology and home fitness is not reflected in the changes made to the basket of goods and services.
The basket is revised yearly to reflect changing consumer behavior. This year, items were added, including VR headsets and yoga mats, reflecting a trend towards technology and home fitness.
The annual inflation rate is currently at %. This figure has significant impacts on interest rates, benefits, pensions, and salary negotiations.
The ONS includes in a basket of 752 goods and services to calculate inflation rates, currently at 3% annually.
On the flip side, items like newspaper adverts were due to the rise of online platforms.
The basket reflects evolving consumer preferences and , providing insights into our lifestyle and spending habits.
