Pork Pies Out, Leggings In as U.K. Unveils New Inflation Basket
(Bloomberg) -- U.K. statisticians are whipping the nation’s inflation measure into shape, kicking out pork pies and adding women’s exercise leggings in their annual review of the basket used to calculate living costs.
Action cameras, raspberries, quiche and prepared mashed potato have all been added to the list of 714 items statisticians use to gauge the measure, while Edam cheese and leg waxing have been removed, the Office for National Statistics said Tuesday.
The new basket reflects the changing nature of children’s play, with adult-supervised soft play sessions also being added, while “sit and ride toys” replace tricycles.
Grown up habits are also considered, with media players such as Chromecast and Apple TV supplanting digital TV recorders and Freeview boxes. A “bottle of lager in a nightclub” is removed, following the 2016 departure of nightclub admissions from the basket.
The pound’s drop since the Brexit vote has pushed U.K. inflation to 3 percent, well above the Bank of England’s target. Faster price growth was a major reason behind officials’ decision to hike interest rates for the first time in more than a decade last year, and investors are betting the next move could come as soon as May.
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