§ Mr. Austin Mitchellasked the Chancellor of the Exchequer what evidence he has of a causal connection between devaluation and the rate of inflation; and if he will publish this in the Official Report.
§ Mr. Peter ReesThe relationship between movements in the sterling exchange rate and the rate of inflation depends on a large number of factors. These include the relative movements of sterling against different currencies, whether the exchange rate movements are expected to be temporary or permanent, the pressures on margins and costs at the time and the stance of Government policy.