§ Q24. Mr. Greville Janner
asked the Chancellor of the Exchequer what he estimates the rate of inflation will be on 21 May.
§ Sir Geoffrey Howe
The latest forecast, published in December last year, is for a 14 per cent. increase in the retail prices index during the 12 months up to Q4 1980, I do not intend to elaborate on330W this forecast. A further forecast will be issued at the time of the Budget.
§ Mr. Biffen
The retail prices index rose by 18.4 per cent. in the 12 months to January 1980. This figure is distorted by the Budget tax changes, and a better guide to changes in taxpayers' costs is the tax and price index which rose by 16.1 per cent. over the same period.
§ Mr. Dormand
asked the Chancellor of the Exchequer what has been the rate of inflation in the United Kingdom in each of the years since becoming a member of the European Economic Community.
§ Mr. Lawson
The two measures most often used as indicators of inflation are the implied index of total home costs—sometimes known as the gdp deflator—and the general index of retail prices. Figures for both series are shown in the table below.
Percentage increase on preceding year Implied index of total home costs General index of retail prices 1973 7½ 9.2 1974 17 16.1 1975 27 24.2 1976 13½ 16.5 1977 12 15.8 1978 10½ 8.3 1979 11* 13.4 * First three quarters of 1979 compared with the corresponding period of 1978.