§ Mr. Knoxasked the Chancellor of the Exchequer what has been the rate of inflation in each year since 1945.
858W
§ Mr. BiffenThe two measures most often used as indicators of inflation are the implied index of total home costs—sometimes known as the gdp deflator—and the general index of retail prices. Figures for both these series for the period 1948–1978 are given in the annual supplement toEconomic Trends, 1980 edition—pages 5 and 112 respectively.
The implied index of total home costs is available only from 1948 onwards, but estimates of changes in retail prices in the period 1945–48 are available and are as follows:
Percentage change on preceding year 1945+1 1946+¼ 1947+¾ 1948+7 Source: Department of Employment.
Figures for the whole of 1979 are not yet available. In the first three quarters of 1979, the implied index of total home costs increased by 11 per cent. compared with the same period of 1978. In the period January to November 1979 the general index of retail prices increased by 13 per cent. compared with the same 11 months of 1978.
Mr. Lawson: The retail prices index rose by 17.4 per cent. in the 12 months to November 1979. This figure is distorted by the effects of the Budget tax changes, and a better guide to changes in taxpayers' costs is the tax and price index which rose by 15.1 per cent. over the same period.