§ Q3. Mr. Cartwrightasked the Prime Minister what is Her Majesty's Government's current estimate of the rate of inflation by the end of the current year.
§ The Prime MinisterThe Chancellor of the Exchequer has estimated that the retail price index will show an increase of 17½ per cent. in the 12 months to November 1979, and the position at the end of the year is likely to be little different.
Q7. Mr. RobertHughes asked the Prime Minister if she will make a statement on the impact of value added tax on the rate of inflation.
§ The Prime MinisterThe increase in VAT added about 3½ per cent. to the RPI.
§ Q10. Mr. Geoffrey Robinsonasked the Prime Minister if she will make a statement on the impact of the Government's policies on the current and prospective rate of inflation.
§ The Prime MinisterOur policies of firm monetary and fiscal limits and gradually reducing Government expenditure offer the only long-term answer to inflation.