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Monday, 19 March 2007, 11:52 GMT

Sat nav guide to inflation basket

Sat nav system Sat nav, small flat-panel TVs and mobile ringtones have replaced video recorders, portable TVs and ghetto blasters in the UK's shopping baskets.

The annual review of spending on key items, used to gauge inflation, has given its usual fascinating insight into changing consumer trends.

Olive oil and electric fans are added to the "inflation basket", replacing Brussels sprouts and vegetable oil.

Spending on an item has to reach a certain level before it is included.

Radio frequency

Other diverse additions to the 2007 basket include digital radios, courgettes, and fizzy drinks bought from vending machines.

Expenditure on credit card charges and mortgage arrangement fees have also been recognised for the first time, reflecting the continued strength of the property market.

ON THEIR WAY IN


Flat-panel TVs

On the other hand, goods which were once a symbol of technological progress, such as the Walkman cassette player and the 35mm compact camera, have disappeared.

Brie, once a regular feature of upmarket picnics, has also been excluded along with children's wellington boots, non-designer sunglasses and the outdoor plant pot.

The Office for National Statistics (ONS) monitors the cost of about 650 goods and services as a basis for compiling the consumer prices index (CPI) and the retail prices index (RPI).

ON THEIR WAY OUT


Brussels sprouts

These spending trends are highly significant, because the RPI is used to calculate increases in pensions and other benefits, while the government uses CPI as its inflation target and influences the level of interest rates.

Popular consumer gizmos are conspicuous by their presence this year, with sat nav devices and mobile ringtones following digital cameras - present since 2004 - into the basket.

"Spending on sat nav systems has now reached a level that demands their inclusion," a spokesman for the ONS said.

"Video cassette recorders drop out of the basket, reflecting falling spending as households switch to DVD recorders."




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Related to this story:
Mobile trends of 2007 (16 Feb 07 |  Click )
Seasonal shoppers go for sat-nav (03 Nov 06 |  Business )
Drivers warned of sat-nav thefts (17 Jun 06 |  Hampshire )
Will digital kill the radio star? (19 Feb 07 |  Technology )

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Office for National Statistics
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