5. Mr. Dixonasked the Chancellor of the Exchequer what were the percentage increases since October 1973 in the retail price index (January 1962 = 100) in March 1974 and April 1974, respectively; and what is his estimate of the contributions made to those increases by the price of oil imports.
§ Mr. DellIn March the General Index of Retail Prices was 6.1 per cent. higher than in October 1973, and in April it was 9.8 per cent. higher. By April the direct effect of oil import price increases had been to add about 1 per cent. to the index. Including indirect effects, it is estimated that the eventual effect of the increases will be to add about 3 per cent. to the index, but it is difficult to judge how much of this had come through by April.
Mr. DixonDoes the right hon. Gentleman agree that a major, if not the major, reason for the apparent failure of the previous Government's stage 3 policy was the Middle East developments? Does he agree that in his present position he is under the same difficulties as were experienced by the previous Government?
§ Mr. DellCertainly the increase in oil prices has been a factor in inflation in this country and elsewhere. The effect of the increase in oil prices has not yet fully worked through into the retail price index. Fortunately there are signs of commodity prices generally stabilising, which of course would be a favourable factor.