Inflation

HC Deb 21 March 1985 vol 75 c594W

20. Mr. Andrew MacKay

asked the Chancellor of the Exchequer if he will make a statement on the current level of inflation.

Mr. Lawson

Over the 12 months to January 1985, the retail prices index increased by 5 per cent.

35. Mr. McNamara

asked the Chancellor of the Exchequer if he will assess the consequences for inflation of the recent fall in the exchange rate and rise in interest rates.

Mr. Ian Stewart

There may well be a temporary upward movement in inflation, resulting from many factors, including the exchange rate, but the Government's financial policies should ensure a swift resumption in the downward trend.

44. Mr. Frank Cook

asked the Chancellor of the Exchequer if he will estimate the effect of the Budget on inflation.

Mr. Peter Rees

We estimate that the direct effect of the Budget measures on the retail prices index will increase it by ½ per cent. But downward pressure on inflation will be maintained through the medium-term financial strategy.