HC Deb 26 May 1999 vol 332 c185W
Mr. Jack

To ask the Chancellor of the Exchequer for what reasons 2½ per cent. remains his inflation target; and if he will make a statement. [85349]

Ms Hewitt

The Government's inflation target is 2½ per cent., defined by the 12-month increase in the RPI excluding mortgage interest payments (RPIX). Low inflation is an essential precondition for achieving the Government's objectives of high and sustainable levels of growth and employment.

Mr. Jack

To ask the Chancellor of the Exchequer what changes to current economic policy would be required to achieve a 2 per cent. inflation target by the end of 2000. [85348]

Mr. Maude

To ask the Chancellor of the Exchequer what plans he has to introduce legislation to change the measure of inflation used by the Bank of England to define progress towards achieving the Government's target rate of inflation; and if he will make a statement. [85384]

Ms Hewitt

In his last Budget on 9 March 1999, the Chancellor confirmed the Government's inflation target is 2½ per cent. defined by the 12-month increase in the RPI excluding mortgage interest payments (RPIX). This target was reaffirmed in a recent letter from the Chancellor to the Governor of the Bank of England, setting out the remit for the Monetary Policy Committee. A copy of this letter has been placed in the House of Commons Library.