Measuring Inflation - Sign of the Times

To measure inflation the Office for National Statistics needs to find out the 1000 most common items bought in the UK. Each year they conduct a Family Expenditure Survey to find out what people spend their money on. - Measuring Inflation

• Problems of measuring inflation

Recent Items Added to CPI

• Broccoli
• Olive oil,
• Probiotic drinks, such as Yakult and Actimel,
• mobile phone ringtone downloads,
• credit card charges
• and mortgage arrangement fees.

Items Excluded from CPI

• Brie
• VHS recorders,
• video cassettes and
• bulky cathode-ray tube television

Generally food items have been downgraded, services have become more important

The March inflation figures are due out today and are forecast to be around 2.7%