HC Deb 26 March 1981 vol 1 cc386-7W
25. Mr. Greville Janner

asked the Chancellor of the Exchequer how much would be required, at the latest available date, to match the buying power of £100 on 1 January of the years 1950, 1955, 1960, 1965, 1970, 1975, 1980 and 1981, respectively; and how much he estimates will be required on 1 January 1982.

Mr. Brittan

The information requested for the years 1950 to 1981 is as follows:

January £
1950 842
1955 650
1960 562
1965 480
1970 388

January £
1975 233
1980 114
1981 101

The calculation is based on movement in the RPI between 1950 and February 1981, which has been taken from the Employment Gazette. Figures are not available for 1 January and in each case the January RPI day—the second or third Tuesday of the month—has been used. All figures are rounded to the nearest £1.

I regret that a forecast for January 1982 is not available.

I can, however, provide a figure of £93 for November 1981, which is based on the forecast movement in the RPI included in the Financial Statement and Budget Report.

26. Mr. Latham

asked the Chancellor of the Exchequer whether he will make a statement on the Government's progress in reducing the rate of inflation.

Sir Geoffrey Howe

The annual rate of inflation for the period to February 1981 was 12.5 per cent. This compares with a figure of 21.9 per cent. for the period to May 1980. This reduction clearly shows that the Government's policy of tackling inflation by maintaining strict monetary and fiscal controls is working.