VR headsets and yoga mats added to inflation basket

(Sharecast News) - Exercise mats, pre-cooked pulled pork and VR headsets have all been added to the basket of goods used to calculate inflation, the Office for National Statistics confirmed on Tuesday. A total of 23 items have been added to the basket, and 15 removed, leaving a total of 752 goods and services.

The contents of the basket is updated every February, to help ensure the consumer prices index reflects longer-term trends in consumer spending.

Alongside yoga mats, VR headsets and pulled pork, other items added this year include mango, smoked salmon, men's pool sliders, fixed tariffs for gas and electricity and on-demand video subscription services.

Removed items include fresh minced turkey, after analysis showed this area was over-represented in the basket, hiking boots and newspaper adverts, as more advertising is now bought online.

The ONS said: "The contents of the basket and associated expenditure weights are updated annually. This is important in helping to avoid potential biases that might otherwise develop, for example, because of the development of entirely new goods and services."

Factors taken into consideration when deciding what items to measure include ease of finding and pricing the product, availability through the year and variability of prices within a class.

UK inflation currently stands at 3%, a 10-month high. The ONS said the increase, up from December's 2.5%, was driven by airfares dropping by less than expected and the imposition of VAT on private school fees.

Services inflation rose to 5% in January from 4.4% in December, although that was below the Bank of England's forecast 5.2%.

Core inflation - which strips out the more volatile elements of energy, food, alcohol and tobacco - rose to 3.7%, in line with expectations.