Tax and Price Index

Oral Answers to Questions – in the House of Commons at 12:00 am on 24th July 1980.

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Photo of Mr Ioan Evans Mr Ioan Evans , Aberdare 12:00 am, 24th July 1980

8. Mr. Ioan Evans asked the Chancellor of the Exchequer what are the latest figures for the tax and price index.

Photo of Mr Peter Rees Mr Peter Rees , Dover and Deal

The tax and price index rose by 17.4 per cent. over the 12 months up to June 1980.

Photo of Mr Ioan Evans Mr Ioan Evans , Aberdare

In view of the fact that there have been over 9,000 price increases this year, that the Government have doubled the rate of inflation, that they have introduced a new index that gives a better impression than the RPI, and that it might be higher than the RPI in August because VAT is coming out of the RPI, will the hon. and learned Gentleman consider introducing a new index—a tax, prices and unemployment index?

Photo of Mr Peter Rees Mr Peter Rees , Dover and Deal

I suspect that the two indexes are enough.

Photo of Mr Douglas Jay Mr Douglas Jay , Wandsworth Battersea North

When will the rate of price inflation fall to the level at which it stood when the Government took office?

Photo of Mr Peter Rees Mr Peter Rees , Dover and Deal

It would be a rash person who made such a prediction with utter confidence. As my right hon. and learned Friend has said, we hope that it will fall to 16½ per cent. by the autumn.