HC Deb 15 May 2003 vol 405 cc378-9W
Mr. Flight

To ask the Chancellor of the Exchequer what the average levels of inflation of(a) public and (b) private sector costs have been in each year since 1997 on (i) goods, (ii) services and (iii) labour. [112740]

Ruth Kelly

The information requested falls within the responsibility of the National Statistician. I have asked him to reply.

Letter from Len Cook to Mr. Howard Flight, dated 15 May 2003: As National Statistician I have been asked to reply to your recent question on levels of inflation of public and private sector costs on goods, services and labour. (112740) Data that exactly match those requested in the question are not available. The attached table shows the nearest available figures.

Inflation Measures 1997–2002
Change on previous year (per cent)
1997 1998 1999 2000 2001 2002
Average Earnings Index (Public sector) 2.2 3.3 4.1 3.8 5.0 4.0
Average Earnings Index (Private sector) 4.7 5.6 5.0 4.7 4.3 3.5
Retail Prices Index (Goods) 2.2 1.6 0.9 0.3 0.3 -0.5
Retail Prices Index (Services) 3.1 3.2 3.5 3.5 3.8 4.6

The household consumption deflator measures the change in prices of all goods and services purchased by households regardless of whether they are purchased from public or private sectors.

The government consumption deflator measures the change in prices of goods and services produced by government.

As with all deflators, this may not fully reflect the change in quality of the services produced.

The gross fixed capital formation deflator measures the price of capital goods. There is no separate deflator for public and private sector purchases.

The average earnings index covers earnings; but not include other components of labour costs.

The Retail Prices Index is the main domestic measure of inflation in the United Kingdom. It measures the average change in the prices of goods and services purchased by most households in the UK.

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