Swine Flu

Adam Price
To ask the Chancellor of the Exchequer whether his Department has made an estimate of the effects of swine influenza on inflation in the UK.

Sarah McCarthy-Fry
The Treasury’s latest assessment of the economy, including inflation, was published in Budget 2009 (HC 407). Estimates of the effects of swine influenza on inflation in the UK are inherently uncertain and would depend crucially on the necessary assumptions employed. However, HM Treasury continues to monitor all relevant factors from a range of sources to inform its assessment of the UK Economy. The effects on inflation from economic and other developments are also closely monitored by the Monetary Policy Committee (MPC) of the Bank of England. The MPC has full operational independence from the Government in deciding how to meet the Government’s inflation target of 2 per cent. on a Consumer Price Index basis.

Bob Spink
To ask the Chancellor of the Exchequer what recent estimate he has made of the cost to the UK economy of the outbreak of swine flu.

Sarah McCarthy-Fry
The Treasury's latest assessment of the economy was published in Budget 2009 (HC 407). Estimates of the potential cost to the UK economy of an outbreak of swine flu are inherently uncertain and would depend crucially on the necessary assumptions employed. HM Treasury continues to monitor all relevant factors from a range of sources to inform its assessment of the UK economy.