§ 2. Mr. PawseyTo ask the Chancellor of the Exchequer what is the current rate of inflation in the United Kingdom; and what is the rate for France, Germany and Italy.
§ The Economic Secretary to the Treasury (Mr. Anthony Nelson)Inflation in the United Kingdom is currently 2.6 per cent. That compares with 1.7 per cent. in France, 3 per cent. in Germany and 4.1 per cent. in Italy.
§ Mr. PawseyI thank my hon. Friend for that helpful reply. It is clear that the policies being pursued by my right hon. and hon. Friends in the Government have resulted in inflation falling significantly below the European Community average. Does my hon. Friend agree that low inflation is the foundation for economic growth and that economic growth equals more jobs and greater prosperity for all the British people?
§ Mr. NelsonYes, I agree. Our economic performance, not least on inflation, is the envy of the rest of Europe. Certainly the European Commission expects the United Kingdom to be the only country to combine stronger growth with low inflation both this year and next.