§ 25. Mr. Arthur Lewisasked the Secretary of State for Industry whether he will give an estimate of what is likely to be the inflationary effect of the recently announced increases in the postal and telephone charges if these are passed on to the consumer by industry and those having to pay these extra charges.
§ Mr. Gregor MackenzieThe direct effect is an increase in the retail price index of just over one-third of 1 per cent. The calculation of the indirect effect is more difficult, but it could be up to two-thirds of 1 per cent. The latter would, of course, take place over a period of time as firms adapt their prices.