Lipgloss and straighteners have now replaced hairdryers and lipsticks in the ‘typical basket’ of consumers, which is used to calculate inflation.

An average basket of shopping is used to show public spending habits. The list has 650 products in it of what the average Britain is likely to buy. The prices of these items are then caluculated to tell the Consumer Price Index and Retail Price Index. The government then use these statistics to calculate the inflation target which banks must achieve.

Other items now included in the list are cereal bars and allergy tablets, as the nation begins to start taking their health more seriously. Another indication of this is the introduction of small bottles of mineral water, whilst cans of fizzy drinks are no longer in the list.

Technology has also changed, Blu Ray discs and computer games are also on the list.

In the 1950s, baskets included Dance Hall Tickets, camera films and crisps for the first time, whilst candles, swede and soap flakes were taken out.

What consumers put into their shopping baskets is looked at year upon year. However, the idea was first used in the Victorian Era, when Sociologist Benjamin Rowntree tackled the issue of poverty by calculating the price of a shopping basket full of what people would need to survive. In doing so, he realised that most people could not afford the items inside. This put a stop to the theory by upper classes that the poor simply squandered their money. Due to Rowntree’s research, the government were able to better understand British people’s living conditions.

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The recession hit and the country panicked. Jobs were lost, banks were demonised and consumer confidence plummeted.

In order to survive and cut back on spending, shoppers learnt new behaviours. These behaviours included shopping around for products, researching products online, buying own branded goods or visiting cheaper supermarkets, using voucher codes from VoucherSeeker and being more prepared to haggle for items.

The recession is now over (so we are told) so does this mean that we shall go back to buying branded products at face value?

Supermarkets and grocers would very much like this to happen. Their stores are seeing people become more choosy about which products to buy and watching their money much more carefully. Stores like pounds shops, Lidl and Aldi are all seeing increased spending.

In fact, Time for Dessert? Ten Emerging Trends in the Food & Drink Sector and How to Respond, launched by Barclays Corporate and Verdict Research has found that consumers were holding on to these behaviours, having realised their saving potential.

Shops are finding it harder to convert visitors into shoppers as people keep a close eye on their expenses.

Simply put, retail outlets are now going to have to work much harder in order to once again entice customers.

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When it comes to spending women are quite brilliant. We can spot a bargain anywhere, can spend all day in town and not spend a penny. We can spend an hour in town and come back with a car….. We know where to get the bargains from either the high street or the internet and we can sniff out a good bargain from miles away!

According to research by Empathica, 72% women moderately to significantly cut their spending during the recession, compared to just 62% of men.

However, it may be that men and women are choosing where to save and spend. One in ten men admitted to stopping eating out, whist only one in five women said they stopped going to restaurants to save money.

The use of voucher codes also has an impact, as 48.3% of women would be tempted to use a voucher codes for a meal out, whilst only 39.8% of men would be tempted.

This research does not show that women are better than men when it comes to spending, merely that men and women have different approaches to spending.  Whilst men will cut back on things such as eating out, women will allow themselves little treats such as meals out, whilst cutting back on other luxuries.

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