§ Mr. Gouldasked the Chancellor of the Exchequer how much of the increase of 2.9 per cent. in retail prices which he has estimated would result from a 10 per cent. devaluation would be accounted for by increases in the price of (a) imported fuel, (b) imported basic materials, (c) imported manufactures and (d) domestic manufactures for which there had been an increased export demand.
§ Mr. Denzil DaviesA 10 per cent. depreciation in the exchange rate would have a direct impact on retail prices by increasing the prices of foreign goods. It is estimated that imported fuels would account for about one-fifth, imported basic materials for one-eighth, and imported408W manufactures, including semi-manufactures, for about one-half of this direct impact on prices. The price of domestic manufactures would rise because of the increased import costs, but any additional price rise from increased export demand is likely to be small.