§ 34. Mr. Cormackasked the Chancellor of the Exchequer what estimate he has made of the effect on the Index of Retail Prices between the third quarter of 1964, the second quarter of 1970 and the latest convenient date, of devaluation, changes in taxation, and changes in nationalised industry prices, respectively.
§ Mr. HigginsFollowing is the information:
FACTORS CONTRIBUTING TO THE RISE IN RETAIL PRICES (percentages) Third quarter 1964 to second quarter 1970 Third quarter 1964 to fourth quarter 1970 Third quarter 1964 to fourth quarter 1970 Rise in retail price index +29½ +33¾ +3¼ Estimated effects: Devaluation +2–3 +2–3 Nil Indirect taxation +7–8 +7–8 Nil Nationalised industry prices +3 +4 +¾ These estimates take no account of possible secondary repercussions on prices which could arise from the effect on wages of the initial rise in prices.