Tuesday, March 20, 2007

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
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%

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