Yoga mats and VR headsets used to measure inflation

Yoga mats and virtual reality headsets are not just trendy items anymore; they are now being used by statisticians to help measure inflation. Inflation is a term that describes how the prices of goods and services increase over time. The Office for National Statistics (ONS) has included these items in their basket of goods, which consists of 752 different products and services. This basket is essential for calculating monthly inflation figures, which are crucial for understanding the economy. The inflation rate affects various aspects of our lives, including interest rates for loans, increases in benefits and pensions, and even salary negotiations. The ONS reviews this extensive basket every year to ensure it accurately reflects our spending habits and lifestyle changes. This review process provides fascinating insights into how our tastes and preferences evolve over time. For instance, wild rabbit was part of the first basket in 1947, while tea bags were only added in 1980. This year, the ONS has added 23 new items and removed 15 from the basket. Stephen Burgess from the ONS stated, 'Our inflation basket of goods shows how consumer spending has evolved over the years. ' The inclusion of virtual reality headsets for the first time indicates our growing interest in emerging technologies. Additionally, yoga mats have gained popularity since the pandemic, making them a relevant addition to the basket. The ONS has provided a graphic showing the items that have been added and removed from the inflation basket. The new additions include virtual reality headsets, yoga mats, men's pool sandals, and pulled pork. On the other hand, local newspaper advertisements, fresh minced turkey, and DVD rentals have been removed. The ONS predicts that spending on VR headsets will increase significantly, from approximately £347 million last year to £520 million by 2029. Yoga mats are versatile and are used not only for yoga but also for various home workouts. Men's sliders, or pool sandals, have also made their way into the basket. Pulled pork has replaced oven-ready gammon joints, and mango has been added to the fruit selection. Cushions have also been included to represent the growing interest in soft furnishings for our homes. Conversely, the decline in newspaper readership has led to the removal of local newspaper ads, as many of these advertisements have shifted to online platforms. Last year, air fryers were added to the basket, but hand sanitiser, which was a must-have during the Covid pandemic, has been taken out. Danni Hewson, head of financial analysis at AJ Bell, emphasized the importance of this basket, stating, 'It gives us a crucial economic indicator of what's happening with prices. ' This data helps the Bank of England make informed decisions about interest rates and how much benefits, pensions, and train tickets should increase.