§ 2. Mr. Ashleyasked the Chancellor of the Exchequer if he will give the current rate of inflation and compare it with the level in May 1979 and with the highest level reached since then.
§ The Minister of State, Treasury (Mr. Barney Hayhoe)The retail prices index for October, which is the most recent figure available, showed an increase of 6.8 per cent. over the previous 12 months. The corresponding figure for May 1979 was 10.3 per cent. and the highest figure reached since then was 21.9 per cent. in May 1980.
§ Mr. AshleyIn view of the Government's repeated claims about the benefit derived from reduced inflation, how much of that benefit, if any, will go to old-age pensioners and the millions of people on price index linked social security payments?
§ Mr. HayhoeAll who are on small incomes have a special interest in the defeat of inflation. The Government's increasing success in this will help them as much as others in the community.
§ Mr. WhitneyHas the Treasury estimated what would be the effect on the current rate of inflation of implementing the Opposition's policies, including devaluation by 30 per cent.?
§ Mr. HayhoeAny such consideration would be highly theoretical. Certainly, far from being a programme for economic recovery, the Opposition's policies are contrived and constructed on an unsound base and are potentially disastrous.
§ Mr. HoramDoes the Minister find it acceptable that, on average, every 1 per cent. reduction in the retail prices index is bought at the price of more than half a million more people in the dole queue?
§ Mr. HayhoeThat is a grossly misleading non-statistic. Such comparisons cannot be made. Those who understand these matters are all agreed that
beating inflation is essential if we are to maintain and increase employment."—[Official Report, 28 February 1978; Vol. 945, c. 223.]I say that with authority, using the exact words of the hon. Member for Barrow-in-Furness (Mr. Booth).