Retail Prices

HC Deb 21 October 1968 vol 770 cc865-7

13. Mr. Barnes

asked the Secretary of State for Employment and Productivity if she will make a statement on the present trend in retail prices in relation to the objectives originally set out in paragraph 23 of Command Paper No. 3590.

Mr. Hattersley

The Retail Price Index rose by 4.5 per cent. between devaluation and September, 1968, Bearing in mind the predictable effects of devaluation and the budget measures, this indicates our success in avoiding unjustifiable increases in retail prices.

Mr. Barnes

Does not my hon. Friend agree that although, of course, many prices have gone up, there is nevertheless certainly a psychological element in what people believe to be the case? Has he any plans to provide more factual information about the way in which prices are behaving, particularly as between one type of retail outlet and another?

Mr. Hattersley

It is very difficult to provide adequate information about alternative forms of retail outlet, but my right hon. Friend the Minister of Agriculture is looking into the format of the publications which he produces to give an indication of the prices of food and related substances. However, I take my hon. Friend's point that our success in limiting price increases is far less well known than it should be and we are committed to doing all we can to bring home to the public the remarkable success which we have had in this respect.

Mr. Bruce-Gardyne

Would not the hon. Gentleman agree that the key to the Chancellor's post-devaluation strategy was a fall in the standard of living of the British people? Will he remind his right hon. Friend of that fact? Does he not agree that that strategy cannot be fulfilled unless price rises occur faster than rises in wages?

Mr. Hattersley

In his Budget statement and subsequent speeches the Chancellor of the Exchequer made it very clear that the Government expected increases in prices as a result of devaluation and as a result of his Budgetary measures. I have referred to them in my Answer this afternoon. But in no way does our economic strategy require us to tolerate unnecessary price increases. Indeed, such increases would work against our economic strategy, and it is to that end my right hon. Friend has mounted her highly successful policy.