§ Mr. Freesonasked the Chancellor of the Exchequer what is his latest estimate for the rate of inflation during the third and fourth quarters of 1980, respectively.
§ Mr. BiffenForecasts for future movements in the RPI were published in the FSBR at the time of the Budget; these include a forecast for the year up to Q4 1980.
§ Mr. Freesonasked the Chancellor of the Exchequer what is his latest estimate for the rate of inflation during the period September 1979 to September 1980.
§ Mr. BiffenForecasts for future movements in the retail price index were published in the FSBR at the time of the Budget.
§ Mr. Ernie Rossasked the Chancellor of the Exchequer what has been the percentage increase in the retail price index in each year since 1966.
§ Mr. BiffenThe annual average percentage increase in the retail price index over a year earlier for the years 1966 to 1979 were as follows:
527W
per cent. 1966 3.9 1967 2.5 1968 4.7 1969 5.4 1970 6.4 1971 9.4 1972 7.1 1973 9.2 1974 16.1 1975 24.2 1976 16.5 1977 15.8 1978 8.3 1979 13.4
§ Mr. Cantasked the Chancellor of the Exchequer whether he will publish a breakdown in percentage terms of the factors responsible for the increase in inflation for the latest convenient 12 months.
§ Mr. BiffenThe acceleration in inflation as measured by the retail price index over the last year reflects several factors, including past increases in money supply, the effects of the one-off switch from direct to indirect taxes in the 1979 Budget and the impact of Government measures designed to reduce the PSBR and reestablish control over the money supply. (The latter include overdue rises in " administered " prices—such as nationalised industry charges—and the necessary rise in interest rates.)
It is not possible to quantify the contribution of each individual factor to the acceleration in inflation. However, the one-off rise in VAT is thought to have added about 3½ per cent. to the present year-on-year change in the RPI.