HC Deb 11 June 1971 vol 818 cc383-4W
Mr. Deakins

asked the Chancellor of the Exchequer what has been the average annual fall in the value of money since 1958 in the United Kingdom and in each of the European Economic Community countries.

Mr. Higgins

Taking the purchasing power of the £ sterling to be equivalent to 100 pence in 1958, its value in 1970 is estimated to have been 678 pence, a fall of 32.2 per cent. or an average rate of 3.2 per cent. annually for the twelve years. This estimate is based on the change in the Consumer Price Index over the period.

For comparison with member countries of the European Economic Community, the only published indices refer to retail prices. Figures based on these price indices, and using the General Index of Retail Prices for the whole period in the case of the United Kingdom, are shown in the following table.

Average annual percentage fall in the value of money 1958 to 1970
United Kingdom 3.4
European Economic Community
Belgium 2.6
France 4.0
Germany 2.4
Italy 3.3
Luxembourg 2.2
Netherlands 3.7

Source: O.E.C.D. Main Economic Indicators.