Inflation basket drops DVD recorders in latest revision Changes in households' use of digital technology have resulted in several changes to the basket of goods and services used to measure inflation. Video streaming services like Netflix are in, while DVD recorders are out. The Office for National Statistics (ONS), reports that this year 14 new items are in, while nine are out.

Source: BBC, 13 March 2014 Think about the CPI basket:

Why are goods in the CPI basket being updated?

Give examples of some goods that may have been added to and some goods that may have been deleted from the CPI basket in the last decade.

What type of bias results if the CPI is not updated?

If the CPI basket is not updated, would the inflation rate be higher or lower?

Would the GDP deflator be a better measure of the inflation rate?