§ Mr. Lewisasked the Chancellor of the Exchequer if he is aware that last year import prices fell on average by 2s. in the £, that during this period the cost of living rose by 9d. in the £, and that since spring of last year imports have become much cheaper, yet in the first half of 1958 the retail price index was higher than in the same period of 1957; and what action he proposes to take to ensure that these falling prices are passed on to the consumer.
Mr. AmoryI am of course fully aware of the movement of the various indices to which the hon. Member refers. The adjustment of indices of consumer prices to changes in costs cannot be expected to be immediate, and in considering their movement in recent months it has to be remembered that wage and salary costs, which play a much larger part in the make-up of prices than import costs, have been rising throughout the last two years. It may be that lower import prices have 275W not yet had their full effect on retail prices, but the much greater stability of the retail prices index in recent months is in my view a not unsatisfactory result. I consider it best to rely on normal competitive prices to ensure that lower import prices get passed on to the consumer.