HC Deb 20 July 1994 vol 247 c266W
Mr. Austin Mitchell

To ask the Chancellor of the Exchequer, pursuant to his answer of 4 July,Official Report, column 14, concerning the exchange rate and competitiveness, if he will publish a table showing the periods since 1970 when falls in the nominal exchange rate have been greater than that required to compensate for an increase in the general level of prices; and what evidence he has that such falls in the real exchange rate have been inflationary.

Mr. Kenneth Clarke

Tables showing sterling's exchange rate index and United Kingdom inflation can be found in "Financial Statistics" and "Economic Trends" respectively, published by the Central Statistical Office. Historical data can be found in table 5.1 of the annual supplement to "Economic Trends". Together these data can be used to calculate the information requested. The exchange rate is one of the indicators that is monitored in reviewing monetary conditions, but it is only one of a wide range of factors influencing inflation.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer, pursuant to his answer of 4 July,Official Report, column 14, concerning the exchange rate and competitiveness, what evidence he has that the continued devaluation of the Italian lira has raised the rate of inflation; and if he will publish a table showing for the pound and the Italian lira the fall since August 1992 in the nominal and real exchange rates against the Deutschmark, the ecu and the United States dollar.

Mr. Kenneth Clarke

The exchange rate is only one of a wide range of factors influencing inflation. Monthly average exchange rates and inflation indices for the currencies requested can be found in "Financial Statistics" published by the Central Statistical Office and "Main Economic Indicators" published by the Organisation for Economic Co-operation and Development respectively. Together these data can be used to calculate the information requested.