UK’s shopping habits change
The Office for National Statistics (ONS) has updated its “basket of goods”, which is used to calculate (work out) the rate of inflation. This comes as many families in the UK face much higher prices for essential things like electricity, gas and food.
What is inflation?
Inflation is when prices rise. It affects people because their money becomes less valuable. For example, if the price of sweets goes up but your pocket money stays the same, you won’t be able to buy as many sweets as before.
What is the “basket of goods”?
To work out how much prices have risen, the ONS looks at 700 goods and services. This is known as the “basket of goods”, and it represents what the average UK family spends their money on. The basket of goods changes each year, depending on what people are buying.
What’s changed?
Doughnuts and encyclopedias have been replaced by multipacks of cakes and vegetarian sausages. Antibacterial wipes and pet collars have also been added. This reflects what happened during the pandemic, when lots of people bought pets. Men’s suits have been removed because more people than before the pandemic are now working from home. Campaigner Jack Monroe has asked the ONS to include more essential supermarket products that are bought by people on low incomes.
Why are prices rising?
In December 2021, inflation in the UK reached its highest level in 30 years. This was partly because food and energy prices went up. It’s costing energy companies more to buy gas, and shops are paying more to transport goods. The cost of food and energy is expected to rise again because of Russia’s invasion of Ukraine. The Resolution Foundation has warned that the cost of living could rise by 10% for the poorest families this autumn. People have said the Government should do more to help people cope with these price rises.