To ask the Chancellor of the Exchequer what is his latest forecast of United Kingdom inflation in 1992.

The Budget forecast is for retail prices index inflation to be down to 3¾ per cent. in the fourth quarter of 1992 and 3¼ per cent. by mid-1993.

Can my hon. Friend say what the figure is likely to be next year and what it would become under the Labour party's spending plans?

My hon. Friend makes a good point. Anybody who listened to last week's debate on inflation will have realised that the Labour party has no policy on it. Labour Members do not believe in the exchange rate mechanism—they are always calling for low interest rates —and when Labour were in government average inflation was 15½ per cent., whereas under the Conservative Government it has been 7½ per cent. Labour's lowest rate was never as low as our average.