§ Mr. Matthew TaylorTo ask the Chancellor of the Exchequer (1) what plans he has to produce inflation statistics at a regional level; [110822]
(2) what recent research his Department has undertaken on the cost of living and the rate of inflation in (a) different regions of Britain and (b) households of different compositions and characteristics. [110003]
§ Mr. Timms[holding answer 14 February 2000]: The information requested falls within the responsibility of the Director of the Office for National Statistics. I have asked him to reply.
Pensioner Indices: The Retail Prices Index excludes pensioners deriving at least three-quarters of their income from state pensions and benefits. Separate quarterly indices excluding housing costs are compiled to cover these households
(Housing costs are excluded following a recommendation of the RPI Advisory Committee because of the technical difficulties involved in
their measurement). Table 20 gives the most recent weights
18—Pensioner indices and RPI (excluding housing) January 13, 1987 = 100 One-person pensioner households Two-person pensioner households Retail Prices Index1 (excluding housing) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Quarterly Indices 1989 108.0 110.0 111.0 113.2 108.2 110.4 111.3 113.4 109.0 111.2 112.0 113.7 1990 115.3 118.1 119.9 122.4 115.4 118.3 120.2 122.6 115.3 118.5 120.3 122.6 1991 123.8 127.4 128.5 129.9 123.7 128.0 128.9 130.4 123.4 128.5 129.8 131.5 1992 130.8 132.2 131.6 132.6 131.5 133.2 132.6 133.7 132.3 134.8 134.5 135.6 1993 133.6 135.0 134.8 135.0 134.7 136.8 136.8 136.8 136.0 138.8 139.1 139.5 1994 135.1 137.7 137.4 137.8 137.3 139.6 139.4 139.9 140.0 141.9 141.8 142.4 1995 139.1 140.7 141.0 141.7 141.4 143.1 143.5 144.2 143.7 145.5 145.9 146.5 1996 142.8 144.3 144.1 144.3 145.5 147.2 147.1 147.6 147.6 149.4 149.7 150.7 1997 144.4 145.4 145.6 146.1 147.9 149.0 149.5 150.1 151.2 152.6 153.4 154.3 1998 146.0 147.5 147.5 148.6 150.1 151.8 151.9 152.8 154.5 156.4 156.4 157.3 1999 148.9 — — — 153.3 — — — 157.5 — — — Percentage changes over a year earlier 1989 5.1 5.2 5.4 6.2 4.9 5.3 5.5 6.2 5.2 5.4 5.3 5.6 1990 6.8 7.4 8.0 8.1 6.7 7.2 8.0 8.1 5.8 6.6 7.4 7.8 1991 7.4 7.9 7.2 6.1 7.2 8.2 7.2 6.4 7.0 8.4 7.9 7.3 1992 5.7 3.8 2.4 2.1 6.3 4.1 2.9 2.5 7.2 4.9 3.6 3.1 1993 2.1 2.1 2.4 1.8 2.4 2.7 3.2 2.3 2.8 3.0 3.4 2.9 1994 1.1 2.0 1.9 2.1 1.9 2.0 1.9 2.3 2.9 2.2 1.9 2.1 1995 3.0 2.2 2.6 2.8 3.0 2.5 2.9 3.1 2.6 2.5 2.9 2.9 1996 2.7 2.6 2.2 1.8 2.9 2.9 2.5 2.4 2.7 2.7 2.6 2.9 1997 1.1 0.8 1.0 1.2 1.6 1.2 1.6 1.7 2.4 2.1 2.5 2.4 1998 1.1 1.4 1.3 1.7 1.5 1.9 1.6 1.8 2.2 2.5 2.0 1.9 1999 2.0 — — — 2.1 — — — 1.9 — — — 1 The Retail Prices Index covers the goods and services purchased by all households apart from those pensioner households defined above and the top 4 per cent of the income distribution Source:
Office for National Statistics
770WLetter from Tim Holt to Mr. Matthew Taylor, dated 21 February 2000:
771WAs Director of the Office for National Statistics (ONS), I have been asked to reply to your parliamentary questions on recent research on the cost of living and rate of inflation.The latest research completed on regional RPIs was discussed by the 1971 RPI Advisory Committee. The ONS has not conducted research into regional differences in the cost-of-living.The ONS is aware of the growing demand for regional data in general and possible regional differences in inflation rates were an issue raised in the July 1999 report of the House of Lords Select Committee on the Monetary Policy Committee. The development of regional inflation measures would need to resolve a number of technical matters and would involve large additional expenditure to cover expansions of price collection and of the Family Expenditure Survey. The ONS regularly consults with users about their needs and evaluates these relative to other priorities in the context of its annual planning round.No research has recently been undertaken on differential inflation rates and cost-of-living for different population sub-groups. However, the ONS produces a retail prices pensioner index, which is published quarterly in Business Monitor MM23: The Retail Price Index. An example is attached.The RPI (all items index) covers private households but excludes (a) the households whose total income lies within the top four per cent of all households incomes, and (b) pensioner households which derive at least three quarters of their total income from state pensions and benefits. The latter decision was taken as a result of an RPI Advisory Committee recommendation (Report on Revision of the Index of Retail Prices, March 1962).
19—Pensioner indices: annual averages January 13, 1987 = 100 All items (excluding housing) Food Catering Alcoholic drink Tobacco Fuel and light House-hold goods House-hold services Clothing and footwear Personal goods and services Motoring expenditure Fares and other travel Leisure goods Leisure services Index for one-person pensioner households CZIF CZIG CZIH CZII CZIJ CZIK CZIL CZIM CZIN CZIO CZIP CZIQ CZIR CZIS 1988 104.8 104.6 109.7 106.4 103.5 101.3 106.2 104.5 104.5 109.1 107.9 108.7 109.3 103.3 1989 110.6 110.8 116.7 111.9 106.5 106.8 110.9 109.1 109.3 119.3 115.1 114.9 116.2 106.1 1990 118.9 120.0 126.4 122.3 113.8 116.2 116.5 116.4 115.3 129.4 124.1 121.7 124.8 111.2 1991 127.4 126.1 139.2 137.4 130.2 124.5 123.9 126.7 119.7 143.6 135.0 134.3 134.2 119.2 1992 131.8 128.0 148.0 146.0 144.5 126.9 128.2 133.5 121.2 153.3 146.3 143.2 140.8 122.9 1993 134.6 130.2 155.4 152.2 156.8 125.8 130.0 137.8 122.8 159.6 157.5 150.8 144.0 123.8 1994 137.0 131.8 161.6 155.2 168.6 131.1 130.1 136.4 123.8 165.8 163.7 154.3 143.0 124.8 1995 140.6 136.9 168.5 160.4 180.1 133.7 135.2 134.7 124.7 172.1 166.5 158.2 144.9 127.2 1996 143.9 141.2 174.9 164.6 192.4 134.5 138.9 133.8 124.4 179.8 170.7 162.0 150.9 130.0 1997 145.4 140.9 181.1 168.1 206.7 130.8 139.5 135.2 125.2 187.8 180.9 167.6 154.1 134.9 1998 147.4 142.4 187.7 173.1 224.5 125.6 141.1 137.4 124.8 198.3 190.1 171.5 154.9 139.9 Index for two-person pensioner households CZIU CZIV CZIW CZIX CZIY CZIZ CZJA CZJB CZJC CZJD CZJE CZJF CZJG CZJH 1988 105.0 104.7 109.6 106.7 103.4 101.4 106.1 103.8 104.5 108.8 107.4 108.7 109.4 103.7 1989 110.9 111.0 116.5 112.4 106.4 106.8 110.5 107.9 109.4 118.3 114.2 115.2 116.3 106.7 1990 119.1 120.4 126.3 123.1 113.7 115.7 115.8 114.9 115.5 127.6 122.8 122.1 124.6 112.1 1991 127.8 126.2 138.9 138.5 129.9 124.7 123.2 125.0 120.5 140.4 133.2 135.7 133.6 120.6 1992 132.7 128.2 147.6 147.3 144.2 127.5 127.3 132.1 122.0 150.2 144.5 144.7 140.0 124.9 1993 136.3 130.6 154.9 153.5 156.4 126.1 129.1 136.2 123.4 156.6 156.3 152.7 143.2 126.5 1994 139.1 132.2 161.0 156.4 168.3 131.8 129.3 134.6 124.3 162.9 162.4 156.0 143.1 128.3 1995 143.1 137.4 167.8 161.7 179.7 134.5 134.0 132.6 125.2 169.1 165.6 159.8 145.4 131.1 1996 146.9 141.9 174.2 166.1 191.8 135.0 137.8 131.4 124.7 176.9 170.0 163.3 151.3 134.7 1997 149.1 141.6 180.4 170.2 205.7 131.3 138.8 131.9 125.6 184.5 180.4 168.7 154.0 140.4 1998 151.7 142.9 187.2 175.5 223.2 126.0 140.3 133.5 125.0 194.6 187.9 172.9 154.9 146.2 772W
Weights 20—Pensioner indices: section weights for use in 1999 Parts per 1,000 Weights used One person pensioner households Two person pensioner households Food 284 284 Bread 15 14 Cereals 7 8 Biscuits and cakes 26 24 Beef 8 11 Home-killed lamb 13 13 Imported lamb 3 3 Pork 4 6 Bacon 8 9 Poultry 10 12 Other meat 23 22 Fresh fish 18 19 Processed fish 6 5 Butter 5 4 Oils and fats 5 6 Cheese 7 7 Eggs 14 14 Milk, fresh 22 19 Milk products 6 6 Tea 8 6 Coffee and other hot drinks 5 4 Soft drinks 8 9 Sugar and preserves 6 6 Sweets and chocolates 12 12 Unprocessed potatoes 17 18 Processed potatoes 5 6 Fresh vegetables 113 113 Processed vegetables 5 5 Fresh fruit 117 115 Processed fruit 3 4 Other foods 25 24 773W
Weights 20—Pensioner indices: section weights for use in 1999 Parts per 1,000 Weights used One person pensioner households Two person pensioner households Catering 40 36 Restaurant meals 25 24 Canteen meals — — Take-aways and snacks 15 12 Alcoholic drink 31 42 Beer "on" sales 11 16 Beer "off" sales 4 7 Wines & spirits "on" sales 3 3 Wines & spirits "off" sales 13 16 Tobacco 39 35 Cigarettes 35 31 Other tobacco 4 4 Fuel and light 119 88 Coal and solid fuels 8 12 Electricity 62 42 Gas 46 31 Oil and other fuels 3 3 Household goods 102 116 Furniture 22 28 Furnishings 20 24 Electrical appliances 9 19 Other household equipment 8 9 Household consumables 30 26 Pet care 13 10 Household services 90 59 Postage 6 5
Weights 20—Pensioner indices: section weights for use in 1999 Parts per 1,000 Weights used One person pensioner households Two person pensioner households Telephones, telemessages, etc. 41 25 Domestic services 26 14 Fees and subscriptions 17 15 Clothing and footwear 50 43 Men's outerwear 5 8 Women's outerwear 21 14 Children's outerwear 2 2 Other clothing 13 10 Footwear 9 9 Personal goods and services 60 57 Personal articles 14 13 Chemists goods 22 25 Personal services 24 19 Motoring expenditure 48 112 Purchase of motor vehicles 10 33 Maintenance of motor vehicles 11 23 Petrol and oil 15 34 Vehicle tax and insurance 12 22 Fares and other travel costs 22 16 Rail fares 2 1 Bus and coach fares 9 7 Other travel costs 11 8 Leisure goods 52 48 Audio-visual equipment 6 2 Records, tapes and CDs 1 3 Toys, photographic and sports goods 5 4 Books and newspapers 31 28 Gardening products 9 11 Leisure services 63 64 Television licences and rentals 32 21 Entertainment and other recreation 7 10 Foreign holidays 9 14 UK holidays 15 19 1 Seasonal foods have a total weight of 53 for one person pensioner households and a total weight of 47 for two person pensioner households Source:
Office for National Statistics