Changing consumer spending patterns have led the Central Statistics Office to update the basket it uses to calculate the official rate of inflation. One sign of economic revival is the return of champagne, which fell out of the basket five years ago as demand fell due to the recession but is now back in the basket.
The basket of goods and services used to calculate the consumer price index has also been updated to include items such as larger TV screens, e-readers and television streaming services. In terms of food, fresh hake has replaced plaice and whiting in the basket, while avocados, melons and sweet potatoes have been added.
The updating of the basket of consumer goods and services happens every five years. This work is based on expenditure information gathered in the Household Budget Survey (HBS) which was carried out between February 2015 and February 2016. The HBS consists of a weekly diary of expenditure for households and a more detailed survey to capture larger and less frequent purchases.
Products are removed as well as added. Electronic products removed from the basket include clock radios, home-cinema sound systems, MP4 docking stations, blank CDs, disposable cameras and camcorders.
Changes in consumer preferences in the area of alcohol and tobacco are also reflected in the updates. For example, e-cigarette refills/liquids and craft beer have been added, as well as champagne. The price collection has also been expanded to include various different types of wine – red, white, rose and sparkling.
The expenditure weights for the goods and services in the basket have also been updated using information from both National Accounts and the HBS.
