iPads in, colour film out: the 2012 inflation basket

And the lowly pineapple finally makes it into basket of goods used to calculate inflation.

The Office of National Statistics has released its annual review of the inflation calculation, showing what has been added and removed to the basket of goods used to calculate inflation. This year, out goes the cost of developing and printing colour film, as digital cameras steadily erode that business, and in comes Apple iPads (or rather, "tablet computers"), to reflect the growing size and importance of the market -- tablet computers are predicted to outsell PCs by 2013.

The changes reflect a number of priorities. As well as those related to the death of old technologies and the birth of new ones, others are designed to make the job of actually collating the information easier. So "branded chocolate sweets" replace "candy coated chocolate" due to difficulty of collection, while "outdoor adventure boot" is swapped out for "walking/hiking boot".

Some of the changes reflect different ways of buying the same things. We no longer purchase "cable TV subscriptions" in enough numbers, apparently, instead opting for "bundled communication services"; and "annual leisure centre membership" is taken out. since it is already reflected in, for example, "leisure centre exercise classes".

There is a tough line to walk with some introductions. Adding technology early is always important, since the fall in prices represents a real increase in relative living standards; and yet, pre-empting market adoption runs the risk of artificially dampening the final figures. For instance, blu-ray players were added to the basket in 2010, when they looked like the future of home entertainment; with the growing popularity of streaming services, they now look like an evolutionary dead-end, and yet their continually dropping prices will have lowered inflation, albeit by a miniscule amount.

The ONS always has a tricky job to do in balancing these competing demands, and it is further hampered by the fact that spending habits differ greatly between the most and least well-off in society. Trying to come up with a single figure to represent the whole nation may be an impossible task, but they will carry on trying to do so for as long as we ask it of them.

Included:

Bag of sweets (not chocolate), replacing bag of boiled/jellied sweets, to allow representation of foam sweets which have taken an increasing share of the market.

Tablet computers, introduced to represent a significant and growing market. Also improves coverage in an under-represented area of the basket.

Chicken and chips, takeaway, introduced to improve coverage of catering which has been identified as an under-represented area of the basket.

Pineapple. Fruit prices vary greatly, so it is beneficial to collect across as broad a range as possible.

Removed:

Develop & print 135/24 colour film, this item has a low and decreasing weight due to the increasing popularity of digital cameras.

Step ladder, a relatively low weighted item in an over covered area of the basket.

Subscription to cable TV, replaced by bundled communication services reflecting a change in the way in which this service is purchased.

 

Get the full data (pdf).

 

The lowly pineapple, finally in the inflation basket. Flickr/ECohen, CC-BY-SA

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Chuka Umunna speaks at the launch of Labour's education manifesto during the general election. Photograph: Getty Images.
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After so badly misjudging the leadership contest, how will the Blairites handle Corbyn?

The left-winger's opponents are divided between conciliation and aggression. 

When Labour lost the general election in May, the party’s modernisers sensed an opportunity. Ed Miliband, one of the most left-wing members of the shadow cabinet, had been unambiguously rejected and the Tories had achieved their first majority in 23 years. More than any other section of the party, the Blairites could claim to have foreseen such an outcome. Surely the pendulum would swing their way?

Yet now, as Labour’s leadership contest reaches its denouement, those on the right are asking themselves how they misjudged the landscape so badly. Their chosen candidate, Liz Kendall, is expected to finish a poor fourth and the party is poised to elect Jeremy Corbyn, the most left-wing leader in its 115-year history. For a faction that never ceases to underline the importance of winning elections, it will be a humbling result.

Though the crash has been sudden, the Blairites have long been in decline. Gordon Brown won the leadership unchallenged and senior figures such as John Reid, James Purnell and Alan Milburn chose to depart from the stage rather than fight on. In 2010, David Miliband, the front-runner in the leadership election, lost to his brother after stubbornly refusing to distance himself from the Iraq war and alienating undecided MPs with his imperiousness.

When the younger Miliband lost, the modernisers moved fast – too fast. “They’re behaving like family members taking jewellery off a corpse,” a rival campaign source told me on 9 May. Many Labour supporters agreed. The rush of op-eds and media interviews antagonised a membership that wanted to grieve in peace. The modernising contenders – Chuka Umunna, Liz Kendall, Mary Creagh, Tristram Hunt – gave the impression that the Blairites wanted to drown out all other voices. “It was a huge mistake for so many players from that wing of the party to be put into the field,” a shadow cabinet minister told me. “In 1994, forces from the soft left to the modernising right united around Tony Blair. The lesson is never again can we have multiple candidates.”

While conducting their post-mortem, the Blairites are grappling with the question of how to handle Corbyn. For some, the answer is simple. “There shouldn’t be an accommodation with Corbyn,” John McTernan, Blair’s former director of political operations, told me. “Corbyn is a disaster and he should be allowed to be his own disaster.” But most now adopt a more conciliatory tone. John Woodcock, the chair of Progress, told me: “If he wins, he will be the democratically elected leader and I don’t think there will be any serious attempt to actually depose him or to make it impossible for him to lead.”

Umunna, who earlier rebuked his party for “behaving like a petulant child”, has emphasised that MPs “must accept the result of our contest when it comes and support our new leader in developing an agenda that can return Labour to office”. The shadow business secretary even suggests that he would be prepared to discuss serving in Corbyn’s shadow cabinet if he changed his stances on issues such as nuclear disarmament, Nato, the EU and taxation. Were Umunna, a former leadership contender, to adopt a policy of aggression, he would risk being blamed should Corbyn fail.

Suggestions that the new parliamentary group Labour for the Common Good represents “the resistance” are therefore derided by those close to it. The organisation, which was launched by Umunna and Hunt before Corbyn’s surge, is aimed instead at ensuring the intellectual renewal that modernisers acknowledge has been absent since 2007. It will also try to unite the party’s disparate mainstream factions: the Blairites, the Brownites, the soft left, the old right and Blue Labour. The ascent of Corbyn, who has the declared support of just 15 MPs (6.5 per cent of the party), has persuaded many that they cannot afford the narcissism of small differences. “We need to start working together and not knocking lumps out of each other,” Woodcock says. There will be no defections, no SDP Mk II. “Jeremy’s supporters really underestimate how Labour to the core the modernisers are,” Pat McFadden, the shadow Europe minister, told me.

Although they will not change their party, the Blairites are also not prepared to change their views. “Those of us on this side of Labour are always accused of being willing to sell out for power,” a senior moderniser told me. “Well, we do have political principles and they’re not up for bartering.” He continued: “Jeremy Corbyn is not a moderate . . .
He’s an unreconstructed Bennite who regards the British army as morally equivalent to the IRA. I’m not working with that.”

Most MPs believe that Corbyn will fail but they are divided on when. McFadden has predicted that the left-winger “may even get a poll bounce in the short term, because he’s new and thinking differently”. A member of the shadow cabinet suggested that Labour could eventually fall to as low as 15 per cent in the polls and lose hundreds of councillors.

The challenge for the Blairites is to reboot themselves in time to appear to be an attractive alternative if and when Corbyn falters. Some draw hope from the performance of Tessa Jowell, who they still believe will win the London mayoral selection. “I’ve spoken to people who are voting enthusiastically both for Jeremy and for Tessa,” Wes Streeting, the newly elected MP for Ilford North, said. “They have both run very optimistic, hopeful, positive campaigns.”

But if Corbyn falls, it does not follow that the modernisers will rise. “The question is: how do we stop it happening again if he does go?” a senior frontbencher said. “He’s got no interest or incentive to change the voting method. We could lose nurse and end up with something worse.” If the road back to power is long for Labour, it is longest of all for the Blairites. 

George Eaton is political editor of the New Statesman.

This article first appeared in the 03 September 2015 issue of the New Statesman, Pope of the masses