HC Deb 24 February 1997 vol 291 cc18-9W
Sir Anthony Grant

To ask the Chancellor of the Exchequer what was the change in the purchasing power of the pound between(a) 1967 and 1996, (b) 1970 and 1975, (c) 1975 and 1980, (d) 1980 and 1990 and (e) 1990 and 1996; and if he will make a statement. [15373]

Mrs. Angela Knight

[holding answer 11 February 1996]The information requested falls within the responsibility of the chief executive of the Office for National Statistics. I have asked him to arrange for a reply to be given.

Letter front Tim Holt to Sir Anthony Grant, dated 24 February 1997: The Chancellor of the Exchequer has asked me to reply as the Director of the Office for National Statistics to your recent question on the change in the purchasing power of the pound. The figures requested are shown in the table, and have been calculated from the Retail Prices Index (PRI). Each figure represents the value that a fixed sum of money has in the last year of the given period, expressed as a percentage of its value in the first year of the period. For example, the amount of goods and services which could be purchased (in the UK) with £1 in 1996 is ten per cent of the amount that £1 could have purchased 29 years earlier in 1967. Similarly, the amount of goods and services which could have been purchased with £1 in 1975 is 54‥ of the amount that could have been purchased five years earlier in 1970. It should be borne in mind when making comparisons that the periods covered span different numbers of years.

Period
1967–96 10
1970–75 54
1975–80 51
1980–90 53
1990–96 83

For more information on the method of calculation, you may wish to consult the RPI Business Monitor (MM23), a copy of which is available in the House of Commons Library.