CPI basket revisions

Changes to the CPI basket

16 items have been added and 10 items removed from the CPI basket for 2019 to ensure that it remains a representative one, and one which reflects changing household spending patterns. Each year the basket of around 700 goods and services is adjusted so that it can be trusted to produce inflation figures which are a fair reflection of the impact of price changes on household budgets, and on the ‘cost of living’ for typical consumers. The changes include:

Additions and changes to the basket

Popcorn

Popcorn has been added to reflect increased spending on this item.

Peanut Butter

Peanut butter has been added to reduce the weight of the only other item in this sub-category – margarine.

Flavoured Tea, such as herbal tea

This has been added to reflect it increasing popularity.

Regular Cola Drink

This has been replaced by two cola items – regular and sugar free. This is to help monitor the effects of the new sugar tax on consumption trends.

Adult hats and caps

This item was introduced to diversify the range of items in the relevant category as well as reflect changing trends.

Non-leather settee

This item replaces a three-piece non-leather suite, given that consumers now favour of corner units or settees.

Bakeware – (baking tray and roasting tin)

This new item reflects the growing popularity of home baking.

Dinner plate

Replaces a crockery set, given less popularity in buying dining sets as opposed to individual items.

Washing liquid and gel

This replaces washing powder, which is less popular.

Wheel alignment

This replaces brake fitting, as it is easier to undertake consistent price comparisons.

Portable speakers such as bluetooth speakers

This replaces traditional hi-fi, which, according to the ONS, was becoming increasingly difficult to price.

Smart speaker

Smart speakers, including Amazon Echo and Google Home, have been added to reflect increasing popularity.

Dog treats

Dog treats were added due to their growing popularity with dog owners.

Child’s fiction books (6-12 years old)

The ONS noted that books in general, and this particular category, are an under-represented part of the CPI basket

Electric toothbrush

This was introduced to increase the representation of technology in the personal care class.

Removed from the basket

In addition to the above changes, the following additional items were removed:

Envelopes

Removed from an over-covered area of the basket. Envelopes are a low weighted item as a result of the increasing use of new technology for communication.

Unit Trust initial charge

Unit trust (initial) charges were removed as many unit trusts no longer applying an initial charge.