HC Deb 10 July 1998 vol 315 c669W
Mr. Mitchell

To ask the Chancellor of the Exchequer what estimate he has made of the effect of the increase in short-term interest rates since May 1997 on(a) the RPI, (b) wages and salary negotiations and (c) house prices.[49626]

Mrs. Liddell

Increases in short-term interest rates since May 1997 will return underlying retail price inflation towards target. Rising interest rates will temporarily boost headline RPI inflation because the headline measure includes mortgage interest payments, but this effect unwinds after a year.