Written question asked by Lord Maude of Horsham (Conservative) on Thursday, 20 May 1999, in the House of Commons. It was due for an answer on Wednesday, 26 May 1999. It was answered by Patricia Hewitt (Labour) on Wednesday, 26 May 1999 on behalf of the Treasury.

Treasury

Question: To ask Mr 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.

Answer: 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 2 1/2 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.

Secondary information