§ Mr. Pardoeasked the Secretary of State for Employment what percentage of the annual increase in the retail price index each year since 1964, can be attributed to: (a) the fall in the value of sterling, (b) the increase in indirect taxes and (c) price increases by nationalised industries.
§ Mr. Booth,pursuant to his reply [Official Report, 16th March 1976; Vol. 907, c. 450], gave the following information:
It is not possible to estimate precisely the proportion of the annual increase for any one year in the retail price index which might arise from the fall in the value of sterling because of the uncertainty about the degree to which the effects are passed on and the time taken for the effects to work through.
The table below gives estimates of the percentage of annual increase in the retail prices index, since 1964, arising from the factors (a), (b) and (c). The information indicates changes which arise directly from the factors, though these 440W factors may not themselves be the fundamental cause nor be unrelated.
- (a) changes in customs and excise taxes (other than import duties) and vehicle excise duty
- (b) changes in domestic rates and water charges
- (c) changes in the prices of the goods and services produced by nationalised industries directly affecting the index (NB There are also substantial indirect effects on the index of changes in these prices.).
Approximate Percentage of Annual Increases in the Retail Prices Index arising from Year (a) (b) (c) 1964 … 25 4 10 1965 … 25 7 13 1966 … 20 8 11 1967 … Negligible 1 18 1968 … 40 1 8 1969 … Less than 5 3 9 1970 … Nil 2 11 1971 … −10 5 13 1972 … −5 5 7 1973 … 5 2 3 1974 … 5 2 8 1975 … 10 5 15