§ Mr. WinnickTo ask the Chancellor of the Exchequer what was the average purchasing power of the pound in(a) 1967, (b) 1977 and (c) 1987 relative to its current purchasing power. [22567]
§ Mrs. LiddellThe 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 from Tim Holt to Mr David Winnick, dated 12 January 1998:
The Chancellor of the Exchequer has asked me, as the Director of the Office for National Statistics, to reply to your recent question on the average purchasing power of the pound in earlier years relative to its current purchasing power.The figures requested are shown in the table below, and have been calculated using the all items Retail Prices Index (RPI). For more information on the method of calculation, you may wish to consult the RPI Business Monitor (MM23), a copy of which is held in the House of Commons library.
Internal purchasing power of the pound (pence) Pence November 1997 100 1987 average 64 1977 average 29 1967 average 10 The above means that a basket of goods, which cost £1 to buy in November 1997, could have been purchased in 1987 for sixty-four pence.