Thursday, August 10, 2006

British CPI, or the "Chav Price Index"

A recent article in the Sunday Times suggests that Britain's inflation is low, but only when measured in the prices of goods favored by the nation's lower classes.

The basket of goods used to assess the increase in cost of living is weighted towards bargain items, says the Times. Data compiled by the Office for National Statistics suggest that the government's Consumer Price Inflation basket has been piled high with cheap goods. This led one observer to refer to the CPI as a "Chav Inflation Index".

For more on Britain's inflation measure, see the article entitled, "Inflation is low...but only on the Chav Price Index".