§ Mr. Rileyasked the Secretary of State for the Colonies whether he can make a statement on the present cost of living in Palestine; and what action is being taken to control recent steep price increases?
§ Mr. Emrys-EvansThe official cost of living index for Palestine, which rose in the second quarter of this year from 218 to 248 actually fell to 247 in July and 243 in August. The rise in the second quarter was principally due to increases in the food groups and more particularly in the prices of fruit and vegetables which are in short supply and, as will be appreciated, are especially difficult to control. The Government of Palestine are fully aware of the importance of stabilising, so far as possible, the cost of living, and measures of price and distribution control which have been introduced have been successful in preventing much higher increases than those which have actually occurred. As in all Middle Eastern territories, however, it has not yet been possible wholly to check the inflationary tendencies arising from war-time circumstances including large military expenditure and other factors outside the control of the Palestine Government. The situation is, however, being closely watched with a view to preventing further rises.