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VR headsets added to consumer price inflation basket

ended 18. March 2025

The ONS has this morning announced that, in 2025, 23 items have been added to the basket for the Consumer Prices Index including owner occupiers' housing costs (CPIH) — while 15 items have been removed, resulting in a total of 752 items in the 2025 basket. Additions include virtual reality (VR) headsets, men's sliders, exercise mats, pre-cooked pulled pork, and fixed tariffs for domestic gas and electricity. Removals include oven-ready joints, newspaper adverts, newspaper adverts, reflecting the continuing shift towards online communication, and in-store cafeteria meals. Newspage asked financial services experts for their views, below.

5 responses from the Newspage community

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If you want to know what Britain cares about in 2025, look no further than its inflation basket, with a focus on fitness, tech and trying to lock in an energy deal before it’s too late. The annual update to the UK’s inflation basket is more than just a statistical exercise, as it provides a snapshot of how consumers are adapting to an economy that has left many feeling exposed. While headline inflation figures may suggest that price pressures are easing, the shifting composition of the basket tells a different story, one of consumers adapting to an economy still shaped by uncertainty. The decision to include fixed tariffs for domestic gas and electricity in the inflation basket highlights how energy prices have become so integral to the cost-of-living equation that they are now tracked alongside essentials like food and transport. What was once a fairly niche product has gained prominence as consumers look for predictability amid ongoing economic instability and price volatility.
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The inclusion of VR headsets in the inflation basket is baffling. While tech evolves, it’s hardly an essential purchase or a widely consumed item like groceries or fuel. Inflation measures should focus on real-life spending habits, and while some people buy VR headsets, they’re nowhere near as relevant as, say, rent, food, or transport costs. Meanwhile, removing more common items like oven-ready joints raises questions about how representative this basket really is. It feels like a shift towards tech for tech’s sake rather than an accurate reflection of what’s truly driving household spending and inflation.
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I can't imagine the work that must go into forming the CPI basket, seeking to build a representative picture of the British consumer, but VR headsets? Are they mad? Digging into the basket, we see our fictional Brit spends their money on a remarkably diverse set of products and services. Highlights include butane gas, self-tanning products, kebabs and "ethnic" take-aways, Sunday newspapers and smart lightbulbs, wild bird seed and ceramic tiles, and, of course, plenty of booze and tobacco products required, presumably, to nurse the pain of rising rents, stockbrokers' fees, private school tuition and nursery fees. The basket actually makes a lot of sense, but the truth is, there is no one true basket. Everybody experiences inflation differently, with the major contributors being rents and mortgage payments, then food and transport. Swapping pulled pork for gammon joints is just an evolution of the average of the average.
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The only way Keir Starmer will see an improved economy and happier public under his administration is with a VR headset on, so it’s no surprise their importance has risen and they’ve made the list. Who compiles this list? It’s great that they’re making changes to modernise the approach to inflation, but some of these items seem devoid of logic.
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The ONS 2025 update of its CPIH basket is a snapshot of a thriftier, techier Britain with the addition of 23 items like VR headsets, men’s sliders, exercise mats, pulled pork, and fixed energy tariffs while cutting 15, including oven-ready joints and newspaper adverts spells out a sofa-bound, time-poor digital life Britain.