According to a new index, naughty foods are becoming more affordable in Britain in comparison to other commodities as earnings rise.
Many of life’s guilty pleasures are outpacing inflation, according to an index that tracks cheeky consumer products. Ice cream and fizzy beverages, for example, are rising at a slower rate than salaries in the United Kingdom.
Despite a greater cost-of-living pinch brought on by an increase in the price of essentials such as petrol and energy, the findings are encouraging.
While the Consumer Price Index (CPI) indicates that the cost of living has increased by 9% year over year, the new ‘Consumer Vice Index’ (CVI) suggests otherwise.
In order to track the expense of Britain’s bad habits, independent economist John Hawksworth established the CVI for InvestingReviews.co.uk, which is made up of about 100 commodities that are considered minor vices.
While the CPI, which is used to gauge inflation in the UK, is at an all-time high of 9%, the CVI only shows a 4.5 percent increase, while wages increased by 5.6 percent.
Taking wage growth out of the equation, the snacks are 1.1 percent less expensive.
Off-license alcohol, tobacco, fast food, carbonated beverages, chocolate, horse racing, and boozy package vacations were among the categories. The index measured how much money households spent on various items.
The research combined selected price data from the Office of National Statistics with Real Time PAYE Employment and Earnings analyses based on HMRC information.
CVI costs increased by 4.5 percent in the year to April, while pay increased by 5.6 percent, implying that life’s guilty pleasures are becoming more accessible.
The findings could bring some respite in an otherwise bleak economic environment.
Due to a surge in fuel and energy costs, consumer price inflation (CPI) remains substantially greater than median wage increase (5.6 percent vs. 9%).
Scotland (0.4 percent) is at the top of the CVI table, owing to relatively low wage growth and increased spending on tobacco goods, which have seen fast price increases in the past year.
Wales (0.2 percent) came in second, owing to slow wage growth.
Despite Northern Ireland’s Brexit difficulties, the Six Counties’ indulgences were relatively cheaper, down 2% year on year, thanks to solid wage growth.
The South West (-1.8%) and London (-1.4%) also had impressive performances.
‘At long last, we have some encouraging data to present,’ said Simon Jones, CEO of InvestingReviews.co.uk. Alcohol, chocolate cookies, and even a trip to the local racetrack are getting more affordable.
‘No one is claiming that any of these activities are beneficial for you, but with all the doom and gloom in the world, people have a right to live a bit.’
‘Families have been hammered hard in recent months by strong increases in electricity, petrol, and basic food prices, which have pushed headline inflation rates to the highest seen in a generation,’ said economist John Hawksworth.
‘However, our study suggests that there is a minor silver lining in the fact that a tight labor market has pushed up pay growth across the UK in comparison to pre-Covid standards.’
‘As a result, some of life’s guilty pleasures, such as cake and biscuits, as well as booze and package trips, have become more accessible in recent months, even as other cost-of-living constraints have increased.’