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Energy Prices

Volume 474: debated on Thursday 24 April 2008

13. To ask the Chancellor of the Exchequer what assessment he has made of the effects on the economy of the recent rises in energy prices. (200872)

Increases in global energy prices, driven by developments in the oil and wholesale gas markets, inevitably continue to influence UK inflationary pressure. And our Budget economic forecasts fully reflected the impact of these developments on the UK economy. However, the UK is better placed to respond to these challenges than in the past, with employment at record highs, inflation presently lower than in the euro area or the United States and the IMF expecting UK GDP growth to be the fastest in the G7 again this year.