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Familes count their chickens (and free-range eggs and bottles of rosé)

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Published Date: 24 March 2009
HOT rotisserie chicken, rosé wine and internet DVD subscriptions have become common purchases for consumers.
All these items have been added to the national shopping basket used to calculate inflation.

The Office for National Statistics (ONS) released the annual list of goods and services yesterday, reflecting changing lifestyles.

Wine boxes, MP3 pl
ayers and rentals from DVD hire shops were removed from the basket of goods as part of the review, making way for MP4 players and Blu-ray discs, highlighting the latest trends in new technology.

ONS collects about 120,000 prices every month for a "basket" of about 650 goods and services, to better reflect public spending habits. Changes in the prices of the items are used to compile the two main measures of inflation – the consumer prices index and the retail prices index.

The way consumers order their home entertainment – from the internet rather than from a video shop – is hinted at with the switch to online DVD rentals. A Freeview TV receiver box has been added to show the increase in spending associated with the digital TV switchover.

Professor Robert East, an expert in consumer behaviour at Kingston University, said the shopping list acted as a social barometer. "It tells you what the public is buying and what their interests are," he said.

"You can also see the 'Aldi effect' where people go to save money. It can also reflect ethical and environmental trends."

Changes to eating and drinking habits were reflected with the inclusion of free-range eggs – a shift towards more ethical food shopping – while the surge for hot rotisserie chicken represents the growing popularity of takeaway food from supermarkets.

Rosé wine is increasingly popular, and to make space for this, the wine box, introduced in 2006, has been dropped.

The latest data reveals that spending in certain areas has changed markedly, with households splashing out far more on fuel and energy bills than in recent years.

However, "luxury spending" on restaurants and hotels, clothing, footwear and motoring has declined, as a result of consumers tightening their belts.

Introduced in the post-war period, Britain's basket of goods has changed dramatically over time.

"It was started in 1947 and there have been vast changes," said a spokesman for the ONS.

"In 1947, the basket included mangles, women's corsets, candles, gramophone records and wireless licences. The aim is to reflect as closely as we can the way people spend their money."





The full article contains 417 words and appears in The Scotsman newspaper.
Page 1 of 1

  • Last Updated: 24 March 2009 12:17 AM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: Inflation
 
1

RufusT-Firefly,

23/03/2009 22:52:38
And don't forget....................

A Car,
A Blu-ray Player,
A 40 inch Plasma,
2 Laptops and loads of clothes.
2

RufusT-Firefly,

23/03/2009 22:54:32
Traquir Alba is so old that his basket still contains:

A mangle,
A woman's corset,
Candles,
Gramophone records and a wireless.
3

Lynn,

Madison, Wisconsin, USA 24/03/2009 06:49:52
"Rosé wine is increasingly popular, and to make space for this, the wine box, introduced in 2006, has been dropped."

What! Rosé wine isn't available in a box over there!! It's a scandal!
4

Orpheum,

Port Coquitlam, BC 24/03/2009 07:37:20
Here in Canada it is known as the Consumer Prices Index (CPI) and it is used to measure changes in the cost of a basket of goods and services (purchased by a family of four) based on a fixed year equalling 100 and reflecting changes in the curent period. This calculation is used to describe Cost of Living (COLA) changes to earnings. For example if 2001 + 100 and todays index equals 106 then a negotiated formula agreed to between the employer and the employee would result in an increase. There are seven weights, Food,Transportation,Reading and Recreation,Tobacco and Alcohol, Housing,Health; and Education. Each weight is measured and the total makes the basket. Rose wine would be measured under Tobacco and Alcohol, Chicken would come under Food and DVD'a would come under Reading and Recreation. Interesting variations are at play too, for example purchasing a Chocolate Bar at the Supermarket would be measured under Food but purchase of the same Chocolate bar at the Movies places it under Reading and Recreation. How is it recorded? by a survey of 1000 families monthly. In the United States it is the measured by the Bureau of Labour Statistics (BLS) and also used to measure earnings.
5

Orpheum,

Port Coquitlam BC 24/03/2009 07:39:44
#4 Should read 2001 = 100, Sorry!
6

sceptic,

livingston 24/03/2009 15:04:42
"a shift towards more ethical food shopping"

Curiously so called ethical food sales are down! Seems the CPI and RPI are lagging indicators!
7

Josiecamp,

San Francisco 25/03/2009 22:18:49
#6 The BLS in this country includes all the Items you have indicated as does the CPI in Canada. Suggest you read the guidlines of the ONS (UK Index) and it will show inclusion there too.

 

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