In the News
Alexa joins the Consumer Price Index!
11th March 2019
Smart speakers are in and envelopes are out of the revised basket of goods and services used to calculate the consumer price index.
According to the ONS, "Currently, around 180,000 separate price quotations are collected every month in compiling the indices, covering around 700 representative consumer goods and services."
What’s in the basket of goods and services and how has it changed over time? Scroll through 70 years of shopping history with our interactive timeline https://t.co/Rg28YSUKDj
— Office for National Statistics (ONS) (@ONS) March 11, 2019
Items added to the inflation index for 2019 include:
- Baking trays
- Popcorn
- Peanut butter
- Washing liquid gels
- Flavoured tea
- Home smart speakers such as Alexa and Google Home
- Dog treats
Items removed from the index include:
- Washing powder
- Envelopes
- Dry dog food
- Hi-Fi systems
What’s in and out of our basket of goods 2019? Items entering the basket this year include: smart speakers like Amazon Echo and Google Home, and portable speakers https://t.co/3iNNM2Noyi pic.twitter.com/Q2cDDlAgiX
— Office for National Statistics (ONS) (@ONS) March 11, 2019
The weightings used in the cost of living calculation have also been adjusted drawing on new data from the Family Expenditure Survey.
CPIH weight, Jan 2019 (per cent)
- Food & non-alcoholic beverages 8.0
- Alcohol & tobacco 3.2
- Clothing & footwear 5.7
- Housing & household services 29.8
- Furniture & household goods 5.2
- Health 2.2
- Transport 12.4
- Communication 2.0
- Recreation & culture 12.5
- Education 1.8
- Restaurants & hotels 9.8
- Miscellaneous goods & services 7.4
The way we live: the ONS updates the 'basket of goods' of commonly bought items used to measure inflation. Smart speakers, flavoured tea and electric toothbrushes are IN, envelopes, three-piece suites and hi-fis are OUT. More on @BBCNews pic.twitter.com/XaT55549Zh
— Ben Thompson (@BenThompsonTV) March 11, 2019
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Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
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