Inflation and Growth

HC Deb 07 March 1995 vol 256 cc103-4W

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer what proposals he has for relaxing his inflation targets to allow a faster rate of growth; and what is his estimate of the growth rate for 1995 and 1996 compatible

Destination	Duration	Cost (£)	Organisations/groups met
Chancellor of the Exchequer	1994
Naples	8–10 July	3,316	G7 Summit. Finance Ministers
Brussels	11 July	1,726	ECOFIN. EU Finance Ministers
Brussels	27 July	1,844	ECOFIN. EU Finance Ministers
Germany	9–11 September	2,172	Informal ECOFIN. EU Finance Ministers
Malta	26–28 September	1,316	Commonwealth Finance Ministers Mtg.
Madrid	28–30 September	3,087	Bretton Woods Conference. Ministers and Businessmen
Madrid	1–5 October	2,910	G7/IMF Meetings with Ministers
Luxembourg	10 October	2,782	ECOFIN. EU Finance Ministers
Brussels	21 October	985	ECOFIN. EU Finance Ministers

with an inflation target of 2.5 per cent. by the end of this Parliament.

Mr. Nelson

Permanently low inflation is the best way to ensure healthy growth in the economy. The Government's inflation target is designed to achieve this, and is set out in the "Financial Statement and Budget Report 1995–96", together with forecasts for output and inflation.