HC Deb 11 November 1982 vol 31 cc662-3
17. Mr. Proctor

asked the Chancellor of the Exchequer if he will make a statement on the control of inflation.

Mr. Brittan

The year-on-year rise in prices is now lower than for a decade, and we expect it to come down further to around 5 per cent. by next spring. But that is still too high, and we must maintain the policies that have successfully brought inflation down so as to create the conditions for a sustainable recovery of output and employment.

Mr. Proctor

Is my right hon. and learned Friend aware that Her Majesty's Government deserve the praise of the whole House for reducing the rate of inflation? Will he continue to maintain close control of public expenditure to make sure that inflation comes down below the 5 per cent. figure that he specified in his answer?

Mr. Brittan

I am grateful to my hon. Friend. It is of some significance that we have secured proper control of public expenditure so that for the first time since 1977 the plans that we have made have not had to be adjusted during the course of the year.

Mr. Newens

Does the Minister accept that the falling inflation rates are largely due to the comparatively low prices of primary products throughout the world as a result of the depressed world economy? Is it not true that as soon as there is a revival, which is absolutely essential, the policies that the Government have pursued will do nothing to stop a return of inflation through increases in the price of oil and other primary products?

Mr. Brittan

That is not so. The hon. Gentleman has identified only one of a considerable number of components that have led to the satisfactory progress that we have made in reducing inflation.