§ Mr. Bestasked the Chancellor of the Exchequer if he will state the fall in commodity prices for the last 12 months for which figures are available; if he will state the level of effect this has had on inflation; and if he will make a statement.
§ Mr. Ian StewartIn the middle of January 1986 theEconomist (all items) index of commodity prices (which excludes oil) was 9 per cent. lower when measured in 66W SDR's than a year previously but 2 per cent. higher when measured in dollars. Over the same period dollar prices of North sea oil fell by 25 per cent.
Lower inflation in the world economy clearly contributes to the reduction of domestic inflation but it is not possible to isolate the precise contribution.