§ Mr. Gouldasked the Chancellor of the Exchequer what study he has made of the effect of commodity prices on the level of inflation in the United Kingdom; and if he will publish in the Official Report a table showing what effect the change in the level of commodity prices has had on the level of inflation in the United Kingdom since 1981.
§ Mr. Peter ReesThe relation between world commodity prices and United Kingdom inflation depends on the stance of economic policy; in particular on whether or not the Government simply accommodate inflationary pressures. The MTFS provides a framework within which United Kingdom inflation has been, and will continue to be, reduced irrespective of movements in world commodity prices.