Inflation

HC Deb 28 July 1989 vol 157 c1131W

Mr. Thurnham

To ask the Chancellor of the Exchequer what is his latest estimate for the rate of inflation; and if he will make a statement.

Mr. Ryder

The all-items RPI inflation rate in the year to June 1989 was 8.3 per cent., the same as in May. Underlying inflation is much better depicted by the increase in the RPI excluding mortgage interest payments; it rose 5.9 per cent. in the year to June 1989, down slightly from the 6 per cent. figure in May. Inflation may now have peaked and monetary policy will remain as tight as is necessary for as long as is necessary to ensure that it declines.