UK government attempts to further manipulate consumer price index

The United Kingdom government will attempt to further distort its official basket of goods used to calculate the nation’s consumer price inflation.

The Financial Times reports that the UK will add 13 goods and services to its basket, including e-cigarettes, protein powders, sweet potatoes, music streaming subscriptions and video games. This is a questionable move because it’s safe to say that most people do not consume e-cigs or protein powders.

Although the government claims that it’s a move to keep up with the times, it’s likely an attempt to further isolate rampant price inflation. These items are not genuinely reflective of price inflation, and it’s important to remember that consumer price indexes can be vastly distorted by items that barely move up or down in value (like music streaming subscriptions or headphones).

The real meat and potatoes of price index are things that are commonly used by households, such as eggs, milk, meat, vegetables, fruit, rent, oil, etc. Even if protein powders move up in prices, it’s not a necessity and it likely won’t affect man, unless you’re an athlete or bodybuilder.

Let’s be honest: it’s a clever move by governments and central banks to mask their inflationary ways.