VR headsets and flipflops join UK inflation basket

In its annual update to the ‘basket of goods and services’ used to monitor inflation price growth, the Office for National Statistics (ONS) added 23 new items and removed 15 to the list of over 700 that reflect typical consumer spending habits, with some additions that may come as a surprise.

Opening the basket of goods

Among the new additions to the basket were virtual reality (VR) headsets, pre-cooked pulled pork, yoga mats, noodles and mangos, while newspaper adverts, oven-ready gammon joints, in-store cafeteria meals and DVD rentals were removed.

As a surprise to some, men’s sliders/pool sandals also made their way into the basket. A sure-fire sign of the times!

Stephen Burgess, ONS Deputy Director for Prices, said the addition of VR headsets to the inflation basket pointed to Britons’ “appetite for emerging technology, while the loss of printed newspaper adverts demonstrates a continuing shift towards the online world.”

Burgess explained the addition of the yoga mats: “Yoga mats also limber up as a new addition due to their increased popularity since the pandemic."

As for the men’s sliders, we still aren’t entirely sure!

How is the basket of goods calculated

In order to calculate an inflation figure, the ONS tracks the prices of hundreds of everyday items and compiles them into one figure. This combination of all the different items and their prices is called the ‘basket of goods’. The basket is constantly updated and adjusted depending on the economic context, and different weightings within the basket are given to different areas of spending in the economy.

Each month the ONS releases a new inflation figure which shows how much the combined prices of items in the ‘basket of goods’ has risen since the same time last year.

The basket currently contains 752 items. The ONS collects the costs of these products and services across many different retailers to come up with the monthly inflation figures.

But what is added or removed each time also gives us a fascinating insight into our changing tastes, trends and lifestyles. For example, wild rabbit was one item included in the first list of 1947. Tea bags only made it in by 1980. It is essentially a reflection of our collective consumer habits in the UK.

Understanding how inflation can impact on your financial plan is key, so if you want to find out more, why not give us a call on 0333 323 9065 or book a free non-committal initial consultation to find out how we can help.

Arrange a free initial consultation

This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions. 

The Financial Conduct Authority (FCA) does not regulate cash flow planning or tax advice.