UK Inflation: Non-Dairy Milk and Gin Added to Basket

15 Mar 2017 --- Non-dairy milk, such as soya, rice and oat milk, are being added to the Office for National Statistics's (ONS) inflation basket for the first time, reflecting the increase in the popularity of dairy-free diets. In addition, gin is returning to the basket after a 13-year absence, with gin consumption on the rise, partly thanks to the significant growth in the number of small gin producers.

The ONS said charities such as Veganuary, which campaign to change public attitudes and encourage people to try vegan for the month of January, had contributed to the growing popularity of non-dairy milk, increasingly thanks to lifestyle choices rather than decisions driven by allergies.

“A few years ago, those avoiding cow’s milk because of lactose intolerance or for ethical reasons were drinking soya, but there’s been a rising demand for alternative plant milk substitutes, including rice, hemp and – most popular – almond,” the ONS said. 

Gin has also been reintroduced after a 13-year absence. The ONS said the one-time favorite of the middle-aged suburban couple had become a staple of the younger drinker. 

Growth in the number of small gin producers and gin festivals have also helped to boost its popularity. The value of gin sold by manufacturers in the UK almost doubled from £126m in 2009 to £239m in 2015.

Michael Andrews, the director of ambient buying for Waitrose, said gin sales had risen 16% over the past year. “With the UK experiencing a ‘ginaissance’, it’s no wonder gin has entered back into the basket this year. It has consistently been our fastest-growing spirit and with so many new boutique brands entering the market this shows no sign of slowing.”

In addition, council tax is being added to CPIH, which includes owner-occupier housing costs and is the most comprehensive measure of consumer inflation. ONS is also publishing a revised back series for CPIH today, including both council tax and updated weights. On average, the changes are small and impact the CPIH annual growth rate by less than 0.1 percentage points. 

As well as updating the goods and services that are included, ONS also updates the weight each item has within the basket to ensure the overall inflation rate reflects households’ spending habits as closely as possible. 

Commenting, senior statistician Phil Gooding said: “The annual basket review enables us to keep up to date with all the latest trends, ensuring our inflation measures reflect the changing costs experienced by consumers.”

“The addition of council tax to CPIH will ensure it remains our most comprehensive measure of consumer inflation.”

The ONS updates the basket once a year to better reflect the lifestyle of the modern consumer in Britain.

“The once-parodied trappings of hipster subculture – from well-groomed beards to a taste for the retro – appear to have become increasingly mainstream in the last few years,” said Jonathan Athow, deputy national statistician for economic statistics at the ONS.

“So perhaps it isn’t a surprise to see items in the latest basket of goods and services which seem as though they could be at home in a hipster household.”