Hand sanitiser, dumbbells and casual clothing have been added to a basket of goods to calculate the cost of living in the UK – highlighting how spending habits have changed during the COVID-19 pandemic.
According to the Consumer Price Inflation Basket of Goods and Services, published by the Office for National Statistics, a year of lockdown spending has been firmly focussed on health and safety.
Every year the basket is updated to reflect consumer sending habits and calculate the cost of living in Britain and 2021
Other additions include hybrid and electric cars and smart technology including smart lightbulbs and speakers.
What is the price inflation basket?
This virtual ‘shopping basket’ is reviewed annually to keep track of the changing cost of products and services. Some items are added, remain the same, or are removed to reflect the changing tastes and habits of UK consumers.
Inflation is calculated by the ONS every month by keeping an eye on price changes of 180,000 goods and services from around the UK – including online and telephone.
The basket takes lifestyle changes into account and this year is heavily influenced by how the public has reacted to the coronavirus outbreak.
This year, 17 items have been added to the basket, 10 removed and 729 unchanged.
New additions to the basket
Life as we knew it has changed in ways we’d never have imagined possible over the last 12 months.
Naturally, this has impacted on shopping habits and the basket contents as people from across the UK were forced to spend more time at home.
From working to working out, daily life revolved around the house more often than not for many.
As such it’s a case of hands, pace and place when it comes to this year’s update. So, what are the main additions to 2021’s basket?
- Hand sanitiser: An essential over the last 12 months, this addition reflects the increased spend on portable personal cleaning products.
- Home weights: With gyms forced to close fitness fans have taken to working out at home during lockdown. According to the ONS this addition shows a trend for healthier living.
- Smartwatches: As more people began working out at home, keeping track of pace and fitness became more of a priority with people turning to smartwatches to track their progress.
- Casual clothing: The daily working uniform has changed over the last 12 months. Sales of men’s loungewear and women’s sweatshirts soared and have been added to the basket to reflect the move towards more casual clothing.
- Smart lightbulbs: As home renovations continue to keep idle hands occupied during lockdown and stay at home restrictions, more people have opted for smart of Wi-Fi lightbulbs.
- Hybrid or electric cars: While not an every day purchase the ONS says the addition of hybrid or electric cars reflects an increase in sales and the longer term move to the end of new petrol and diesel cars by 2030.
What has been dropped from the basket?
White chocolate bars: White chocolate is being replaced by malted chocolate sweets, such as Maltesers, which attract higher spending and improve the balance across different brands and types of confectionery.
Office canteen sandwiches: As working from home has become the norm for many, sales of canteen sandwiches have plummeted.
Gold chains: The gold chain enjoyed a surge in popularity following the hit BBC Three drama Normal People, but dwindling sales have dropped gold chains from the basket.
Ground coffee: Coffee sachets replace this item, reflecting a trend towards all-in-one beverages.
Axminster and Wilton carpets: As this carpet is used mainly in commercial premises now this has been removed from the basket.
Spending has been impacted by the pandemic
Commenting on the 2021 basket of goods, ONS head of economic statistics, Sam Beckett, said: “The pandemic has impacted on our behaviour as consumers, and this has been reflected in the 2021 inflation basket of goods.
“The need for hygiene on the go has seen the addition of hand sanitiser, now a staple item for many of us. Lockdown living has seen demand for home exercise equipment rise, while spending more time within our own four walls has also encouraged us to invest in smart technologies.
“A more casual approach to clothing, as more of us work from home, has seen the addition of loungewear into the consumer basket.
“These annual changes are only a small percentage of the items sampled. This year we’ve added 17 items, removed 10 and left 729 unchanged.”
How has the basket changed over seven decades?
For seven decades the Office for National Statistics has been using a notional ‘Basket of Goods and Services’ to help measure the rising and falling cost of products and services over time.
But how has the basket changed over the decades? Here we explore stand out additions, reminiscing about some of the once household favourites that are now forgotten.
1940s: Condensed milk, three-piece suits, corsets, corned beef
1950s: Washing machine, NHS prescriptions
1960s: Fish fingers, fridge
1970s: Smash, Party Seven Beer, cassette recorder
1980s: Duvet, Cinzano, muesli, salad cream, microwave, VHS
1990s: Fromage frais, CD players
2000s: Chicken nuggets, MP3 players, sat navs, Freeview boxes
2010 and beyond: Garlic bread, sweet potatoes, tablet computers, E-cigarette refills, protein powder, women’s exercise leggings
