§ Mr. HowardTo ask the Chancellor of the Exchequer what assessment he has made of the implications for the proposed move to HICP of the trend in the gap between the RPIX measure of inflation and the HICP measure of inflation. [121566]
§ John HealeyI refer the right hon. and learned Gentleman to the statement made by my right hon. Friend the Chancellor of the Exchequer on 9 June 2003,Official Report, column 412, in which he said that the advantage of the internationally recognised index of consumer prices—HICP—is that it is a better measure, will improve the quality of our target, is in line with best international practice and is used by every other G7 nation but Japan, and by our neighbours in Europe. The Chancellor also said (Official Report, column 414) that, subject to confirmation at the time of the Pre-Budget Report, he intends to change the inflation target at that time.
§ Mr. PriskTo ask the Chancellor of the Exchequer what assessment he has made of the impact of changing the measurement used for the Monetary Policy Committee's inflation target on(a) the effectiveness of future monetary policy and (b) the credibility of monetary policy. [121441]
§ John HealeyI refer the hon. Gentleman to the statement made by my right hon. Friend the Chancellor of the Exchequer on 9 June 2003,Official Report, column 412 in which he said that the HICP was a better measure of inflation for setting monetary policy, would improve the quality of our target, and was in line with best international practice.