§ Mr. Arthur Lewisasked the Chancellor of the Exchequer if he will estimate the effect of the recent increase in mortgage payments, rail fares, the television licence fee, fuel, milk and basic foods on the retail price index.
§ Mr. Bruce-GardyneThe recent 2 per cent. increase in the mortgage rate will in due course add 0.6 per cent. to the retail prices index. The end-November increase in British Rail fares will add significantly less than 0.1 per cent. to the December RPI. The recently announced increase in television licence fees will add 0.1 per cent. to the December index. The price of gas was increased in October, and coal and coke in November. The combined effect of these by January will be to add 0.3 per cent. to the index. The price of milk has been unchanged since last January. The RPI does not distinguish "basic foods" from other items in the food index. The above estimates only reflect the direct impact of these changes and do not take account of their effects on the rest of the economy.