HC Deb 29 April 1976 vol 910 cc186-7W
Mr. Trotter

asked the Chancellor of the Exchequer what is his estimate of the effect in percentage terms on the United Kingdom cost of living of each one per cent. fall in the overseas purchasing power of the £ sterling.

Mr. Denzil Davies

I would refer the hon. Member to the first of the two Answers my right hon. Friend gave on 24th March 1976 to the hon. Member for Kingston-upon-Thames (Mr. Lamont)—[Vol. 908, c. 215.]

Mr. Radice

asked the Chancellor of the Exchequer by what amount sterling has been devalued against the standard basket of currencies since 1971.

Mr. Robert Sheldon

I assume the hon. Member is interested in the effective depreciation of sterling from Smithsonian parities calculated by reference to a trade weighted basket of the currencies of our 10 major trading partners. It widened from zero to 37.1 per cent. between 19th December 1971, the date of the Smithsonian Agreement, and the start of business on 29th April.

Mr. Radice

asked the Chancellor of the Exchequer by how much inflation has

U.S.A Canada Japan Belgium France West Germany Italy Netherlands
(a) … 35.7 42.3 69.4 48.5 48.8 29.1 73.0 43.1
(b) … -22.2 -22.4 -23.8 -32.2 -32.0 -38.2 2.6 -36.2
Sweden Australia Spain Norway Denmark Austria South Africa United Kingdom
(a) … 38.8* 57.1† 68.7 44.5 53.5 39.5 52.3‡ 81.8
(b) … -29.3 -24.9§ -20.3§ -35.4 -31.6 -39.0 -9.9§ —
*December 1975.
†November 1971 to November 1975.
‡January 1976.
§Rate on 27th February 1976.

Mr. Radice

asked the Chancellor of the Exchequer what is the weighted inflation of the standard basket of currencies since 1971 compared with that of sterling.

Mr. Robert Sheldon

The changes in consumer prices indices given in my reply of today's date to another question by the hon. Member, when averaged with the weights used in the calculation of the value of IMF Special Drawing Rights, produce a figure of 47.4 per cent. compared with the figure of 81.8 per cent. given for the United Kingdom.