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Defence: Inflation

Volume 464: debated on Wednesday 10 October 2007

To ask the Secretary of State for Defence what the defence inflation planning assumptions are for financial years 2007-08 to 2010-11. (156236)

In line with all Government Departments, the GDP deflator is used to estimate inflation. It is available on HM Treasury website:

As the GDP deflator is frequently updated, to simplify our internal planning process, inflation is currently rounded to 2.5 per cent.