§ Q36. Mr. Kenneth Carlisleasked the Prime Minister if she will make a statement on the current rate of inflation.
§ The Prime MinisterThe 5.4 per cent. increase in December was the smallest 12-monthly increase in the296W retail prices index for nearly 13 years. Although the fall which has occurred in the exchange rate may lead to small temporary increases in the RPI over the coming months it will have no lasting effect on inflation provided sound financial policies are pursued.