§ Mr. LawsonTo ask the Chancellor of the Exchequer what has been the fall in inflation between 1979 and 1990(a) in the United Kingdom and (b) in the G7 as a whole, calculating United Kingdom inflation in terms of the underlying rate in each case.
§ Mr. Norman Lamont[holding answer 25 March 1991]: There are a number of ways of estimating underlying inflation. As measured by the RPI excluding mortgage interest payments and the community charge rates the 12-month rate fell from 12.5 per cent. in 1979 to 7.2 per cent. in 1990. Alternatively as measured by the RPI excluding mortgage interest payments the rate fell from 12.5 per cent. in 1979 to 8.1 per cent. in 1990.
The average 12-month increase in consumer prices for G7 countries in 1990 was 5 per cent. A comparable figure for 1979 is not available.