HC Deb 22 July 1977 vol 935 cc744-5W
Mr. Arthur Lewis

asked the Secretary of State for Prices and Consumer Protection in view of the fact that prices rose by 1p in the £ in June, bringing the annual rate of price increases to 17.7 per cent., because many of the items which rose in price were unaffected by world prices and import price increases, and since the wage control was not the cause, if he will cause an investigation to be made to ascertain the reasons for these price increases.

Mr. Maclennan

The effect of last autumn's sterling devaluation is estimated to have contributed up to one-third of the 17.7 per cent. year-on-year rate in June. We are, however, now coming towards the end of the period of feed through of goods and materials bought when sterling was down, and also of certain food items—tea, coffee, cocoa—bought when world prices were very high, and my right hon. Friend will be keeping the situation under close scrutiny.

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