Price Increases

HC Deb 31 March 1995 vol 257 c863W

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer what criteria he applies in deciding on whether an increase in prices is inflationary. [17112]

Mr. Nelson

Any price increase adds to the 12-month inflation rate for 12 months. Whether it affects the inflation rate after that depends on whether other prices rise in response.