Tracking Inflation: How Yoga Mats and VR Headsets Reflect Our Economy
Understanding Inflation Through Everyday Items
Many people turn to yoga mats and virtual reality (VR) headsets to unwind, but these items are now playing a new role—helping statisticians monitor the rising cost of living. Both have been included in the Office for National Statistics’ (ONS) basket of goods and services, which is used to calculate inflation.
This basket consists of 752 items, with the ONS gathering price data from various retailers to determine monthly inflation rates. Currently, inflation stands at 3% annually, a crucial figure that affects interest rates, pensions, benefits, and wage negotiations.
Reflecting Changes in Consumer Habits
Each year, the ONS updates this basket to accurately reflect consumer spending habits. Additions and removals provide insights into changing lifestyles, trends, and technological adoption.
For instance, wild rabbit was part of the original 1947 basket, while tea bags were only introduced in 1980. This year, 23 new items have been added, while 15 have been removed.
According to Stephen Burgess of the ONS, “Our inflation basket of goods shows how consumer spending has evolved over the years. The addition of virtual reality headsets for the first time shows our appetite for emerging technology. Yoga mats also limber up as a new addition due to their increased popularity since the pandemic.”
A Growing Market for VR and Home Fitness
The inclusion of VR headsets reflects their growing popularity, with spending projected to increase from approximately £347 million in 2023 to £520 million by 2029. Exercise mats, including yoga mats, have gained traction as more people engage in home workouts.
Other notable additions include men’s sliders (pool sandals), pulled pork replacing oven-ready gammon joints, and mangoes added to the selection of fruit. Cushions have also been included to better represent soft lounge furnishings.
Declining Trends and Digital Shifts
While new items make their way into the inflation basket, others are removed to reflect declining relevance. For example, local newspaper advertisements have been dropped due to the shift toward digital platforms.
Recent updates also saw the return of vinyl records after a 30-year absence and the inclusion of air fryers. Meanwhile, hand sanitiser, a staple during the COVID-19 pandemic, has now been removed.
The Economic Significance of the Inflation Basket
Danni Hewson, head of financial analysis at investment platform AJ Bell, emphasised the importance of these changes, stating, “It gives us a crucial economic indicator of what’s happening with prices, a data set that helps Bank of England rate setters determine their next steps and a measure used to work out how much benefits, pensions and train tickets should go up by.”
By continually updating the inflation basket, the ONS ensures that inflation calculations remain relevant, offering key insights that influence economic policies and financial planning.
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