HC Deb 27 June 1978 vol 952 c540W
Mr. Tim Renton

asked the Secretary of State for Social Services, with reference to the Minister for Social Security's letter to the hon. Member for Mid-Sussex of 15th June, how he is able to forecast the rate of inflation in November 1978 at 7 per cent.; and whether it is now the practice of Ministers to make firm forward forecasts of inflation and, if so, on what expectation of wage increases in the 12 months ahead.

Mr. Orme

Forecasts of the rate of inflation are published in accordance with Schedule 5 to the Industry Act 1975 and are prepared using the Treasury economic model. The latest forecasts, including that referred to by the hon. Member, are contained in the Financial Statement and Budget Report 1978–79, which also sets out the earnings and other relevant assumptions made.