personal finance

Smart speakers and bakeware added to UK inflation basket


Alexa, what is the rate of UK inflation? Smart speakers such as the Amazon Echo and Google Home have been added to the items used to calculate the cost of living, as envelopes and three-piece suites go out of fashion.

In the latest annual shakeup of the UK shopping basket used for measuring inflation, the Office for National Statistics said it had reflected shifting consumer habits across the country by including the home technology devices.

The ONS said the popularity of TV programmes such as The Great British Bake Off had perhaps accounted for increased consumer spending on bakeware – another new addition to the 2019 basket of goods and services.

Flavoured teas have also been added given their increased popularity, shown by the shelf space devoted to them in stores, while electric toothbrushes were also thrown into the basket to improve representation of electrical appliances among the objects included for measuring personal care prices.

Peanut butter, books for children aged six to 12, popcorn bought in shops rather than the cinema and dog treats were other new arrivals, the ONS said.

It added that the removal of envelopes reflected the changes in the way people communicated, while washing powder had given way to washing liquid and gel.

The ONS senior statistician, Philip Gooding, said: “We want to reflect modern spending habits, and the alterations we have made highlight shifting consumer behaviour, whether that is in technology, the home or the way we communicate with one another.

“It is important to remember that we change a small percentage of the overall basket. This year we’ve added 16 items, removed 10 and modified 16, while leaving 688 unchanged.”

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Voice-activated speakers have become increasingly popular with British consumers, providing a way to listen to music on demand or to ask internet search questions.

This type of equipment has not been covered previously and it ensures the baskets remain representative of the latest technology.

Argos said in September last year that more British households owned a smart speaker than a pet rabbit.



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