mobileu.co.uk

Smart phone prices to be used to measure inflation

The price of smart phones and smart phone apps is going to be used for the first time to help measure UK inflation rates.

Android phones and iPhones will now be included amongst the 650 consumer items used to track the cost of living. They will replace mobile phone downloads such as ringtones and wallpaper.

The new 'inflation basket' also includes online dating agency fees and high heels. Items removed from the basket include four-packs of lager, fleeces and pork shoulders, replaced by sparkling wine, jackets and oven-ready joints.

The Office for National Statistics (ONS) monitors 180,000 prices on a monthly basis for the 650 goods and services in the inflation basket. Price fluctuations are used to create the Consumer Price Index and the Retail Price Index.

ONS statistician Phil Gooding commented, “Many of these new items show the way technology is changing our lives. Powerful smart phones and the applications that run on them have become essential for many when communicating or seeking information. Likewise, increasing numbers of people now seek a partner via internet dating sites.”