§ Mr. Arthur Lewisasked the Secretary of State for Prices and Consumer Protection whether he will cause an investigation to be made to ascertain to what extent the price of coffee has fallen since April 1977 and whether or not these reductions have since then been passed on to the consumer.
§ Mr. MaclennanThe Price Commission found that a six-to-eight-month lag existed between first-hand prices paid by manufacturers and retail prices, but the duration of this lag will, of course, vary according to market circumstances. I do not consider that there is any need for a further investigation at this stage. Firsthand prices have been falling since last 771W April; so far, the reductions in manufacturers' prices have been equivalent to about 50p per 4oz jar, and I would expect further reductions to come through over the next few months.