New Items Added to UK Inflation Basket
The United Kingdom’s shift towards sobriety and changing consumer habits will be reflected from next month in the basket of goods used to calculate inflation. The Office for National Statistics (ONS) has added alcohol-free beer to its list of 760 items used to measure price changes.
Alongside alcohol-free beer, hummus and pet grooming services have also been included in the basket of goods and services that help assess the impact of rising prices on the cost of living.
These additions will contribute to the consumer prices index (CPI), the retail prices index (RPI), and the consumer prices index including housing costs (CPIH), which is the ONS’s preferred inflation measure.
Reasons for Inclusion of New Products
The inclusion of alcohol-free beer follows increased sales and an expansion in the product range and shelf space dedicated to it, according to the ONS.
Hummus attracted the attention of statisticians due to its growing popularity among health-conscious consumers, with expenditure estimated to reach approximately £170 million in 2024.
Dashboard cameras were also added to the basket after sales reached about £150 million in 2023, with further growth expected as consumers seek to reduce insurance costs and enhance parking security, the ONS stated.
Motorhomes have been included following a rise in sales, likely linked to an increase in early retirement.
Expert Commentary on Consumer Trends
Danni Hewson, head of financial analysis at the stockbroker AJ Bell, commented on these changes:
“Since the pandemic many of us have tried to embrace healthier lifestyles and the proliferation of no- and low-alcohol options helped people change their drinking habits, especially as competition pushed brewers to serve up more quaffable choices.”
“The increase in hummus coincided with the explosion in weight-loss drugs, with consumers increasing their intake as part of a low-calorie diet, while the vogue for owning smaller dogs had increased the demand for pet services.”
“The popularity of ‘doodles’, or poodle-cross dogs with curly coats, has seen increased demand for pet grooming, which is the number one expense for animal owners after health checks.”
Adjustments to the Inflation Basket
To accommodate these new items, the ONS has removed bottled premium lager purchased in pubs and restaurants from the basket. Additionally, sheets of wrapping paper will be replaced by rolls of wrapping paper, which are easier to monitor.
The upcoming inflation figures, covering the year to February 2026, will be published on 25 March and will be based on this revised list of items.
Enhanced Data Collection Methods
Following years of trials, the independent statistics agency will incorporate a more comprehensive dataset derived from electronic feedback from retailers.
The ONS will scan data from 300 million price points across more than 1 billion products sold monthly, replacing the previous system that relied on 25,000 price points checked in-store by ONS inspectors.
Economic Context and Future Outlook
The Bank of England is anticipated to maintain interest rates at 3.75% when policymakers convene on Thursday. Their analysis will include the January CPI figure, which decreased to 3% in January from 3.4% in December. However, concerns remain about a probable rise in inflation during spring and summer as elevated oil prices stemming from the Middle East conflict impact costs for items such as transport and food.
Hewson added:
“With many households bracing themselves for inflation to edge back up as the Iran war continues to push up the price of oil, the impact of rising costs will remain at the forefront of many people’s minds as they strive to budget for the life they want to live.”
The Bank of England’s official inflation target is 2%.
