HC Deb 29 June 1992 vol 210 cc377-8W
Mr. Chris Smith

To ask the Chancellor of the Exchequer if he will make a statement on the reasons underlying his statement of 11 June,Official Report, column 432, that 2 per cent. inflation was probably the equivalent of price stability.

Mr. Nelson

I refer the hon. Member to my right hon. Friend's statements in the minutes of evidence taken before the Treasury and Civil Service Committee's inquiry into economic and monetary union. A limited degree of recorded inflation is compatible with the concept of price stability, reflecting a number of problems in measuring inflation, including those associated with new products and quality changes.