§ Mr. Galbraith
asked the Chancellor of the Exchequer what assumptions his Department has made about the rate of inflation for 1988, 1989 and 1990.
§ Mr. Major
The Financial Statement and Budget Report published in March 1987 contains assumptions for inflation as measured by the GDP deflator for the financial years 1988–89 to 1990–91, together with forecasts for growth in the GDP deflator in 1987–88 and for the retail prices index up to the second quarter of 1988. These figures are presented as follows:
Inflation (percentage change on a year earlier) GDP deflator Forecast 1987–88 4.5 1988–89 4.0 1989–90 3.5 1990–91 3.0 RPI 1987 4th quarter 4.0 1988 2nd quarter 4.0