You are currently viewing Inflation

Inflation

To calculate inflation, the ONS uses a typical basket of goods to work out the rate at which costs are rising – but the average doesn’t reflect most people’s experience. For instance restaurants have a strong weighting on inflation, but they have little impact on elderly people who don’t leave the house. Meanwhile cigarettes have a weak influence on the calculation, but tell that to the chainsmoker who buys a pack a day.

Leave a Reply