§ 53. Mr. Arthur Lewisasked the Secretary of State for Employment and Productivity whether she is aware that in just over a month from 19th March the Retail Price Index rose by 2.2 points, equivalent to a 18 per cent. increase in the cost of living; and, in view of Her Majesty's Government's estimate at the time of devaluation of a 2½ or 3½ per cent. rise in the Retail Price Index figure for a complete year, why, within five months, the cost of living has risen by 3.6 per cent.
§ Mr. Harold WalkerMore than one-half of the rise in the index between 19th March and 23rd April was due to increases in indirect taxation announced by the Chancellor of the Exchequer on 19th March. I see no reason to modify the Government's estimate that devaluation will raise the retail price index by about 3 per cent. and that the tax measures in the Budget and the increase in nationalised industry prices will add about 2 per cent. to the index by the end of this year. There will be some other price increases apart from those due to devaluation and tax changes but all proposed increases will be rigorously scrutinised against the prices criteria of Cmnd. 3590.