HC Deb 19 December 1984 vol 70 cc171-2W
Mr. Proctor

asked the Secretary of State for Employment if he will set out in the Official Report for each of the last 10 years a table showing the tobacco index, the all-items index and the percentage amount by which cigarette prices have been increased above the general rate of inflation; and if he will make a statement.

Mr. Alan Clark

The information is as follows:

Retail prices index (January 1974=100) Differential increase in price of cigarettes †
Tobacco* (a) All items (b) Cigarettes (c)
January
1974 100.0 100.0 100.0
1975 124.0 119.9 123.5 3.6
1976 162.6 147.9 161.8 7.7
1977 193.2 172.4 192.4 2.3
1978 222.8 189 222.2 5.6
1979 231.5 207.2 230.9 -5.4
1980 269.7 245.3 269.9 -1.5
1981 296.6 277.3 296.9 -3.0
1982 392.1 310.6 393.2 20.4
1983 426.2 325.9 426.7 3.6
1984 450.8 342.6 451.3 0.6
October
1984 504.0 357.7 486.3 3.3
* Includes other tobacco products in addition to cigarettes.
Percentage amount by which the increase for cigarettes since previous January exceeds that for 'all items.'

The suggestion has been made from time to time that cigarettes should be excluded from the index, but a fundamental principle of its construction is that the coverage includes the whole range of goods and services on which households spend money. This principle has been followed since the inception of the index in 1947, and follows the recommendations of the Retail prices Index Advisory Committee We accept that recommendation.