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The change is part of wider drive to modernise economic measurements and keep pace with the digital age. Price fluctuations online are considered more volatile, the ONS said, so can provide more rapid snapshots of what is happening in the economy. "The crucial work will help ensure our inflation figures are able to fully reflect fast-changing online pricing, ensuring they remain robust in this increasingly digital time," Mike Hardie, assistant deputy director of surveys at the ONS, told The Telegraph. The UK's Office for National Statistics (ONS) will for the first time include online prices in its inflation measurement, The Telegraph reported . Official figures will now consider online costs when calculating inflation and price fluctuations, in a bid to track what the Telegraph called the "Amazon effect." The ONS did not immediately comment when Business Insider contacted it for clarification on whether Amazon itself would be included. Around 750,000 prices will be collected each week from 30 different online retailers, covering 80 different kinds of product. If successful after a research period, they will be incorporated into the Consumer Prices Index measure of inflation. "The crucial work will help ensure our inflation figures are able to fully reflect fast-changing online pricing, ensuring they remain robust in this increasingly digital time," Mike Hardie, assistant deputy director of surveys at the ONS, told The Telegraph. Inflation measurements, which track the changing cost of goods and services in the economy, have in the past been based only on the price of 700 items sold across 20, 000 UK stores in a virtual shopping basket.
For the original version including any supplementary images or video, visit http://www.businessinsider.com/ons-to-measure-online-prices-in-inflation-measure-2018-7
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