HC Deb 27 February 1978 vol 945 c24W
35. Mr. Wyn Roberts

asked the Secretary of State for Prices and Consumer Protection what is the anticipated effect of the current wage round on prices towards the end of 1978.

Mr. Maclennan

Income from employment accounts for about half of total final expenditure, and the effects of pay settlements on prices reflect this after a lag of up to a year. Eventually, a given increase in earnings is likely to produce an equal increase in prices. It is difficult to be exact about how much of the effect will have worked through by a particular point of time.

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