HC Deb 28 January 1997 vol 289 cc145-6W
Mr. Michael Brown

To ask the Chancellor of the Exchequer if he will make a statement on the consequences for the United Kingdom's future rate of inflation of the acceleration in the monetary—M4—growth between 1995 and 1996. [12926]

Mrs. Angela Knight

M4 is one of many indicators that the Chancellor considers when making his assessment of inflation prospects. Underlying inflation is currently just over 3 per cent. and is forecast in the Financial Statement and Budget Report, which is published with the Budget, to fall to 2½ per cent. by the second quarter of 1997.