§ Mr. Teddy TaylorTo ask the Minister of Agriculture, Fisheries and Food what has been the increase in retail food prices over the most recent 12-month period for which figures are available; and what estimate he has made of the increase in retail food prices which will stem from the elimination of the green pound differential.
§ Mr. CurryIn the year to January 1990 the food component of the retail price index rose by 8 per cent. The Government are committed to eliminating the monetary gap associated with the green pound by the end of 1992 at the latest. The effect of devaluing the green pound will depend on movements in the market rate for sterling over this period. As a broad guide, elimination of the present monetary gap by devaluation of the green pound might add some I to 1.5 per cent. to retail food prices on average.