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.
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