§ Mr. Hancockasked the Paymaster General when the factors used to calculate the monthly inflation index were last reviewed.
§ Mr. LangThe method of compilation of the general index of retail prices is reviewed from time to time by the Retail Prices Index Advisory Committee, which last reported in 1977. My right hon. and noble Friend expects to receive shortly a report from this committee and will he ready to consider making changes to the present methodolgy in the light of its recommendations.
The "weights" used to combine the price movements of the various components of the index are revised as a matter of routine at the beginning of each year and data sources are changed when necessary to take account of changing circumstances.