Smart Phone Apps, Dating Fees Added To UK Inflation Measure

inspector_monkfish

10:26 15Mar11 - Smart Phone Apps, Dating Fees Added To UK Inflation Measure

DJ Smart Phone Apps, Dating Fees Added To UK Inflation Measure

LONDON--Smart phone "apps" and the fees Britons pay to find love online have been added to a basket of consumer goods used to calculate inflation in the U.K., the Office for National Statistics said Tuesday.

The ONS uses a basket of frequently purchased goods and services to track prices U.K. consumers are paying. It reviews the basket once a year.

Apps, short for applications, are small software programs that let smart phone users play games, get directions and shop online from their handsets.

The inclusion of apps in the basket of goods used to calculate U.K. inflation reflects their growing popularity, the ONS said. Smart phone handsets are also included for the first time.

"Powerful smart phones and the applications that run on them have become essential for many when communicating or seeking information," said Phil Gooding, an ONS statistician.

The Bank of England is tasked with keeping inflation as measured by the consumer prices index at 2% a year. In January, rising oil prices and a sales tax hike pushed the index to 4%, and it is forecast to remain at double the bank's target or higher until next year.

The bank has so far resisted raising its benchmark interest rate, but investors expect a rate increase in early summer.

The ONS said sparkling wines and online dating agency fees have also been added to the consumer prices basket, while cigarettes sold through vending machines and pork shoulder have been removed.

PasturesNew

Need two baskets now then:
- regular cost of actual living/staying alive
- cost of living for people who spend money on tat

PasturesNew

inspector_monkfish wrote: »

"Powerful smart phones and the applications that run on them have become essential for many when communicating or seeking information," said Phil Gooding, an ONS statistician.

I've never seen one, nor (obviously) used one.

If you put a smart phone in my hand and asked what it is I'd say "Er ... a phone? Looks like a phone, maybe."

If you then expected me to be able to turn it on, no chance.

FTBFun

PasturesNew wrote: »

Need two baskets now then:
- regular cost of actual living/staying alive
- cost of living for people who spend money on tat

Angry Birds is a necessity isn't it?

PasturesNew

FTBFun wrote: »

Angry Birds is a necessity isn't it?

I have no idea what this means.

amcluesent

Angry Birds and hot birds are both in the basket!

Percy1983

FTBFun wrote: »

Angry Birds is a necessity isn't it?

To the sheeple, yes it is!

thescouselander

FTBFun wrote: »

Angry Birds is a necessity isn't it?

Not a necessity but it is free which is the main thing if you want to make inflation appear to be lower than what it actually is.

In fact out of all the apps on my phone only 3 of them are paid for and I dont expect that will chnage much in the near future.

lemonjelly

FTBFun wrote: »

Angry Birds is a necessity isn't it?

The only angry birds I know are the ones locked in my cellar...

mr_fishbulb

thescouselander wrote: »

Not a necessity but it is free which is the main thing if you want to make inflation appear to be lower than what it actually is.

That's not how it works. They track the changes in price of the things in the basket. So if something is free one year and free the next, the change is 0 (don't think they'd put free things in there anyway).

But technology is one negative influence in the basket. A flat screen TV will generally get cheaper.

inspector_monkfish

lemonjelly wrote: »

The only angry birds I know are the ones locked in my cellar...

...it rubs the lotion on its skin, or else it gets the hose again.....