HC Deb 15 November 1979 vol 973 c700W
Mr. Marlow

asked the Paymaster General if, in view of the tendency to refer to the retail price index in wage negotiations, he will launch a major publicity campaign to establish the taxes and prices index as the true measure of price inflation.

Mr. Maude

The TPI and the RPI measure different things. The RPI is the established measure of price changes. The TPI measures changes in the total costs facing taxpayers, and accordingly reflects movements both in prices—as measured by the RPI—and in taxes. Pay settlements must, of course, necessarily reflect what individual organisations can afford; but within that constraint the TPI is clearly a more appropriate indicator and the Government will continue to make this clear.

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