§ Mr. Martenasked the Chancellor of the Exchequer what have been the five most important causes of inflation over the last two years; and if he will show the 216W estimated percentage of inflation which each has caused.
§ Mr. DellThe bulk of inflation over the last two years is attributable to increases in unit labour costs—50 per cent.; import costs—20 per cent.; indirect taxes—5 per cent.; rent and rates—5 per cent.; and the reduction of subsidies on food and on the output of nationalised industries—10 per cent. These figures must be regarded as only approximate. Of course, higher import costs in turn reflect previous increases in United Kingdom unit labour costs relative to those in other countries, as well as reflecting changes in the terms of trade arising for reasons unconnected with the United Kingdom situation.