HC Deb 31 October 1996 vol 284 cc251-2W
16. Sir Sydney Chapman

To ask the Chancellor of the Exchequer if he will make a statement on the prospects for inflation into the next decade. [329]

Mrs. Angela Knight

The prospects are excellent. In recent years we have enjoyed the lowest inflation rate for almost half a century, and the Government are determined that it should remain low.

Mr. Harry Greenway

To ask the Chancellor of the Exchequer what was the average rate of inflation(a) between March 1974 and May 1979 and (b) since May 1979; and if he will make a statement. [995]

Mrs. Knight

The average rate of year-on-year inflation measured by the retail prices index all items excluding mortgage interest payments was 16 per cent. between March 1974 and May 1979. The average rate since May 1979 has been 6.3 per cent. Since the Government's inflation target rate was set in October 1992, the average rate has been 2.8 per cent.