To ask the Chancellor of the Exchequer what research his Department has undertaken recently into the effect of incomes restraint on inflation. (211403)

The Government regularly monitor developments in public and private sector pay and inflation. Wage pressures are one of the factors considered by the Monetary Policy Committee of the Bank of England when setting interest rates to meet the inflation target.

The Bank of England considers pay restraint across the economy to be key to maintaining low and stable inflation.