§ Mr. Woofasked the Secretary of State for Prices and Consumer Protection if she will make a statement on the progress of policies to reduce the increase in the cost of living.
§ Mr. MaclennanThe Government have set an inflation target of 10 per cent. by the third quarter of 1976 and to single figures by the end of 1976. The monthly rate of price increases has begun to slow down in the second half of this year. The monthly rate of increase in the retail price index during the last two months has been under 1 per cent. and the year-on-year increase fell for the first time in 13 months in September. However, as we have said, we cannot expect dramatic 277W reductions in the year-on-year rate for some months to come because of past cost increases already in the pipeline.
The benefits of the new national agreement on pay overwhelmingly endorsed by the TUC and the Labour Party at their annual conferences recently will take some time to be reflected in the RPI.
My Department is acting to reinforce this overall policy in a number of ways. It is encouraging more local price surveys to give comparative information to shoppers; it is assisting the local authorities to establish more consumer advice centres; it is taking further action on price marking and price listing in public houses; and it is working on proposals for a selective price restrain scheme to be negotiated with the firms and to be introduced as soon as conditions are right.