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Public Expenditure

Volume 505: debated on Friday 5 February 2010

To ask the Minister for the Cabinet Office what measures are used by (a) her Department and (b) the Office for National Statistics of the level of cost inflation within the public sector. (312261)

I have been asked to reply.

The measure for price inflation that the Government use when expressing spending allocations in real terms is the GDP deflator, which measures changes in the overall level of prices for the goods and services in GDP. The latest projections can be found on p.169 of the pre-Budget report 2009:

http://www.hm-treasury.gov.uk/prebud_pbr09_index.htm

The Office for National Statistics also publishes the GDP deflator for past years, details of which can be found in “UK National Accounts: The Blue Book 2009”.