§ 2.45 p.m.
§ Baroness TrumpingtonMy Lords, I beg leave to ask the Question which stands in the name of my noble friend Lady Elliot of Harwood on the Order Paper. I am sure that the House will be sorry to hear that my noble friend has injured her eye and cannot be present today.
§ The Question was as follows:
§ To ask Her Majesty's Government what has been the rate of increase in wholesale prices in the last six months compared with the previous half year period.
§ Lord Cullen of AshbourneMy Lords, over the past six months, wholesale output prices have risen by 4¼ per cent., compared with a 5 per cent. increase for the previous six-monthly period.
§ Baroness TrumpingtonMy Lords, while thanking my noble friend for his reply and welcoming this good news, does he agree that what he has just told us will be of great benefit to people who purchase from wholesalers, which will in turn be passed on to the consumer?
§ Lord Cullen of AshbourneYes, my Lords, I would agree with that; but, in looking at the Retail Price Index, though the fall in wholesale prices will of course be helpful, there will be various other matters to take into account. However, the Government estimate a 9 per cent. increase in RPI by the end of this year and a 7½ per cent. increase during next year.
§ Lord MolloyMy Lords, does the noble Lord not agree that good news sometimes stops at the wholesalers and that there is no great evidence to show that it is passed on to the general body of consumers? Should this not occupy the mind of the Government; to see that fair play goes right the way through?
§ Lord Cullen of AshbourneMy Lords, I was trying to indicate that it is not wholesale prices alone which affect the RPI.