§ Mr. Austin Mitchellasked the Secretary of State for Trade and Industry what is his estimate of the eventual effect on output prices of a 10 per cent. increase in input prices as shown in the wholesale price index, all other things being equal.
§ Mr. ButcherThe relationship between movements in manufacturers' input prices and the prices of their output depends on many factors. These include prices charged by overseas competitors, whether the movements in input prices are expected to be permanent, the level of capacity utilisation in industry and demand for the goods produced. The effect of an increase in the input producer price index (formerly known as the wholesale price index) on the output producer price index cannot therefore be simply stated.