London Daily

Focus on the big picture.

Cost-of-living crisis: Jack Monroe hails ONS update of inflation calculations

Cost-of-living crisis: Jack Monroe hails ONS update of inflation calculations

Move by government statisticians follows analysis by UK poverty activist of impact on poorest families

Concern that rising inflation is having a disproportionate impact on people in poorer households in the UK has prompted government number-crunchers to provide a more detailed breakdown of the cost of living.

The Office for National Statistics said it accepted that every person had their own inflation rate and it would do more to capture the impact of price increases on different income groups.

Mike Hardie, the head of inflation statistics at the ONS, said in a blog the published annual inflation rate – currently 5.4% – was an average for all households. “But everyone has their own personal inflation rate. Some people may spend a larger proportion of their income on gas and electricity, or petrol if you commute via car daily.”

The move was welcomed by the food writer and activist Jack Monroe, who has exposed how prices for cheaper food products have soared as availability fell, contributing to rising hunger and poverty.

Monroe, who is drawing up an inflation index to track basic food prices, tweeted: “Delighted to be able to tell you that the @ONS have just announced that they are going to be changing the way they collect and report on the cost of food prices and inflation to take into consideration a wider range of income levels and household circumstances.”


Writing in last week’s Observer, Monroe said: “In 2012, 10 stock cubes from Sainsbury’s Basics range were 10p. In 2022, those same stock cubes are 39p, but only available in chicken or beef. The cheapest vegetable stock cubes are, inexplicably, £1 for 10.

“Last year the Smart Price pasta in my local Asda was 29p for 500g. Today it is unavailable, so the cheapest bag is 70p; a 141% price rise for the same product in more colourful packaging.”

Terry Pratchett’s estate has authorised Monroe to use the Vimes Boots index as the name of the new price index, which is intended to document the “insidiously creeping prices” of basic food products.

The index, Monroe said, would be called the Vimes Boots index in honour of Pratchett’s creation Sam Vimes, who in the Discworld novel Men at Arms lays out the “Sam Vimes ‘Boots’ theory of socioeconomic unfairness”.

The author’s daughter, the writer Rhianna Pratchett, said her father would have been proud to see his work used in this way by the anti-poverty campaigner.

The ONS previously published a more detailed breakdown of inflation but it was suspended during the Covid pandemic because so many items were unavailable. During the previous economic downturn, the financial crisis of 2008-09, when inflation also surged, the ONS said poorer households were more severely affected.

“Given the level of interest in the cost of living and inflation we are planning to restart this series,” Hardie said.

Over the longer term, he added, the ONS was “transforming” the way it measured prices in order to understand people’s spending patterns in a more detailed and timely way. The ONS measures inflation by looking at the cost of 700 items from a number of price points.

“We are currently developing radical new plans to increase the number of price points dramatically each month from 180,000 to hundreds of millions, using prices sent to us directly from supermarket checkouts,” Hardie said.

“This will mean we won’t just include one apple in a shop … but how much every apple costs, and how many of each type were purchased, in many more shops in every area of the country.”

Newsletter

Related Articles

London Daily
0:00
0:00
Close
Brave English woman hilariously mocks a masked thief as he attempts to steal her bike.
UK General Election: Sunak Acknowledges Disappointing Results but Maintains Confidence
Sword Attack Victim Henry De Los Rios Polonia Grateful for NHS Care
Post Office Lawyer Jarnail Singh Faces Allegations of Lying About Software Bugs
Post Office Scandal: Expert Accused of Giving False Court Testimony
Suspended Tory Councillor Puts Essex Council Majority at Risk
UK Government Loses Court Case Over Inadequate Climate Actions
Apple Faces Significant Sales Decline Amid AI Integration Delay
10,000 Black Cab Drivers Sue Uber for $313M Over Alleged Breach of London Booking Rules
Today’s headlines
Interns Investigate Unsafe UK Criminal Convictions
Contaminated Blood Inquiry Highlights Omitted Risks
Kwasi Kwarteng Criticizes Liz Truss as 'Trumpian'
SNP Overcomes Labour Confidence Motion
Study Finds Gender Health Gap in UK
Reform UK Endorses Conspiracy Theorist Candidates
Family's Deportation Fears Before Channel Tragedy
Labour's Compromise on Zero-Hours Contracts
Risk of Rwandan Deportation for Misclassified Lone Children
Sadiq Khan Accuses Tories of Undermining London
London Daily Morning Headlines - Wednesday, May 1 2024
Amazon Cloud Sales Growth Accelerates
Apple Recruits Google Staff for AI Development
Changpeng Zhao Sentenced to Four Months in Jail
S&P 500 Experiences Worst Month Pre-Fed Announcement
Columbia University's Hard Line on Student Protests
Biden Administration to Relax Marijuana Regulations
Netanyahu's Firm Stance Amid Rafah Hostage Talks
BlackRock to Establish Saudi Investment Firm
UK Food Delivery Firms to Check Riders' Immigration Status
Elon Musk Disbands Tesla’s Supercharger Team
Major Changes at Manchester United Under Ratcliffe
Rap Lyrics as Trial Evidence in England and Wales
Rap Lyrics as Trial Evidence in England and Wales
Monty Panesar to Stand for George Galloway's Party
Sadiq Khan Leads in London Mayoral Polls
UK Tory Chair on Party Funding
Brexit Checks to Increase Food Import Costs
Legal Challenge to Cuts in England’s Cycling and Walking Budget
Rising Homelessness in England
Potential Criminalization of Lying by Politicians in Wales
MPs Advocate for Work Rights for Asylum Seekers
Home Office Loses Track of Rwanda Deportees
Historic Memo Challenges Current UK Insurance Policy
London Daily's Video newsletter
Labour Axes 'Levelling Up' Phrase
UK Sanctions Ineffective Against Russian Economy
Humza Yousaf Resigns as Scotland’s First Minister
UK Plans Cuts to Disability Benefits
UK House Sales Increase by 12% in April
×