Each year, the Office for National Statistics (ONS) updates its “basket of goods and services”—the list of items used to calculate the Consumer Price Index (CPI), which helps measure UK inflation. It’s more than just a list of prices; it’s a snapshot of how our spending habits are evolving and what matters to us as consumers.
So, what made the cut this year?
Among the 23 new items added in 2024 are virtual reality (VR) headsets, pre-cooked pulled pork, yoga mats, smoked salmon, and men’s slider sandals. Gone are DVD rentals, printed newspaper adverts, and in-store cafeteria meals. It’s a clear reflection of our changing lifestyles, preferences, and priorities.
Why It Matters
The inclusion of VR headsets is particularly telling. It’s not just about tech-savvy early adopters—it signals a growing mainstream interest in emerging technologies. From entertainment to education and even remote collaboration, VR is edging closer to becoming a household norm.
At the same time, the departure of printed newspaper adverts underscores our shift towards digital consumption. It’s no surprise to see further evidence of our hybrid, post-pandemic lifestyles—home fitness gear like yoga mats are still on the rise, while quick, convenience-focused foods are nudging out traditional options.
Stephen Burgess, Deputy Director for Prices at the ONS, summed it up well: “The addition of virtual reality headsets for the first time shows our appetite for emerging technology, while the loss of printed newspaper adverts demonstrates a continuing shift towards the online world.”
What This Tells Us About Inflation and Investment
These subtle shifts reveal broader behavioural and economic trends, many of which can help inform investment decisions and personal financial planning. Technology adoption, health-conscious choices, and lifestyle changes all play a role in driving market activity. Understanding how inflation is measured—and what’s influencing it—can help us stay ahead of the curve when building wealth strategies that stand the test of time.
Inflation is currently sitting at 3% (as of January 2024), and while that’s down from recent highs, it still impacts household budgets and long-term financial plans. Paying attention to how inflation is measured (and what it’s measuring) helps make sure your financial strategy remains realistic and relevant.
Final Thought
The ONS basket isn’t just about prices—it’s a mirror reflecting how our lives and spending habits evolve. From tech trends to changing food preferences, these updates help us understand the economic climate we’re navigating every day.
If you’re curious about how inflation and lifestyle changes could affect your financial planning, speak to one of our Wealth Strategists—we’re always here to help you stay on track.
