§ Mr. Tim Rentonasked the Secretary of State for Prices and Consumer Protection whether he will make a statement about the latest rise in manufacturing output prices which equals a year-on-year inflation rate in excess of 20 per cent.
§ Mr. HattersleyThe all-items output index rose by 1 per cent. in March to stand at 20¼ per cent. on a year-on-year basis. The main upward pressure continues to come from food due to the huge surge in input costs, particularly for coffee, tea and cocoa. Over the past year tea and coffee prices have soared by over 200 per cent. and cocoa by well over 100 per cent. It is important not to confuse the output index and the retail price index. The output index relates to items manufactured in this country and excludes a large proportion of consumer purchases, such as rents, fares and various services, which go into the retail price index.