HC Deb 15 November 1988 vol 140 cc571-2W
Mr. Austin Mitchell

To ask the Chancellor of the Exchequer what is the current and forecast rate of inflation on a 12 months' basis; what it was in the month in which he took office; what was the rate in each succeeding 12 months; to what extent the change in each case was due to(a) higher interest rates and (b) a higher exchange rate; and if he will publish in the Official Report a table showing the increase/reduction in each period in (i) interest rates, (ii) the rate of exchange against the deutschemark, (iii) the relative export price of United Kingdom manufacturers, (iv) the terms of trade for finished manufacturers and (v) the increase in unit labour costs in manufacturing and non-manufacturing.

Mr. Major

Information on the latest RPI increase and my right hon. Friend's forecast are given in the Autumn Statement (HC 695). The remainder of the information requested can be derived fromEconomic Trends, Financial Statistics, the Employment Gazette and the Monthly Review of External Trade Statistics.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer to what extent the increase in interest rates is

Percentages
United Kingdom Germany France Sweden
Percentage of total outlay spent on:
Health 1978 10.8 12.7 12.9 n/a
1986 11.3 113.3 118.8 n/a
Social Security and Welfare 1978 27.8 41.4 40.3 n/a
1986 32.7 139.9 133.8 n/a
Percentages of GDP:
Taxes on income 1978 13.7 12.3 5.8 n/a
1986 14.5 11.7 6.5 n/a
Social Security Benefits and Social Assistance Grants 1978 10.1 15.0 16.6 16.8
1986 12.8 14.1 20.0 17.9
1 1985.

Source: OECD National Accounts, 1988 and earlier years.

n/a = not available.

intended to curb inflation by (a) raising the exchange rate, (b) reducing the real disposable incomes of mortgagees, (c) making other forms of consumer credit more expensive and (d) curbing takeovers and other forms of asset speculation.

Mr. Lilley

Monetary conditions need to be considered as a whole and it is neither sensible nor possible to give precise estimates of the effects of interest rate changes working through each individual channel.