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Measuring Inflation

The Office for National Statistics calculates inflation by looking at the price of a representative basket of 699 goods and services (click here). Changes to the basket occur frequently due to changes in consumer tastes and technological improvements. The changes announced yesterday include the inclusion of video-streaming (Netflix) and e-books and the exclusion of DVD recorders (story here). My favourite change to the basket was in 2007 when brussels sprouts were removed after having been in the basket for 60 years!

Source: www.bbc.co.uk/news

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