asked the Secretary of State for Prices and Consumer Protection what further action he proposes to take to control doorstep selling.

The Consumer Credit Act provides for a cooling-off period in respect of credit sales on the doorstep and I am hoping to bring this part of the Act into operation as soon as may be practicable. Possible controls on cash transactions are under consideration.

I am grateful for that answer, but is my hon. Friend aware that the problem of doorstep racketeers, who sell anything from double glazing to pots and pans, will not disappear? Will he tell the House and those who are likely to be affected in future what redress they will have under the new arrangements and what they should do?

Even at the moment the Director General of Fair Trading can suspend or revoke a licence where there has been a deceitful, unfair or oppressive practice by somebody selling on credit. I hope that people will exercise their rights and send complaints to the Director General of Fair Trading when they think that the holder of a licence has acted improperly.

Will the Minister drew the distinction which he and others drew in the House a few weeks ago, namely, that the draft directive from Brussels does not deal with this important problem? Should not the Commission stop worrying about catalogue mail order trading and leave it to the Government of this country to deal under the present law with some of the abuses mentioned?

There are problems in protecting cash transactions. On credit transactions, what I told the House was that I hoped to impose no obligation greater than that which would flow from the Consumer Credit Act.

May I remind my hon. Friend of the events that occurred at 4 p.m. on Friday when a Conservative Member decided, against the pleading of the Royal National Institute for the Deaf, people disabled by deafness, Age Concern for the Elderly and from more than 300 small businesses dispensing hearing aids in the high road—

Order. This Question relates to doorstep selling, not Friday's business.

In order to stop doorstep selling of hearing aids, will my hon. Friend examine the possibilities of preventing this practice by means other than that Bill which was before the House?

I was bitterly disappointed at the behaviour of the hon. Member for Woolwich, West (Mr. Bottomley). I shall certainly see whether there are other ways of achieving this objective, apart from the use of that legislation.

asked the Secretary of State for Prices and Consumer Protection what action he proposes to take to deal with abuses by roofing contractors; and if he will make a statement.

Inexperienced consumers would be wise to take advice before contracting for roofing repairs. The Director General of Fair Trading has the power under the Fair Trading Act to take action against traders who persistently breach their contractual obligations; and also to put proposals to the Secretary of State for controlling particular trade practices which are against the economic interests of consumers. I am keeping under review whether there are sufficient powers to deal with shortcomings in the service trades.

I thank my hon. Friend for that helpful answer. Will he further consider the matter and recognise, as I am sure he does, that many elderly people are unable to check the warranty of work carried out and whether it represents good value for money? Does he think that there is a good case for making a register of such contractors, and does he feel that the matter could be referred to the Price Commission?

I have considered preparing a register, but it would be an enormous operation. With my right hon. Friend, I am giving serious consid- eration to a reference of this subject to the Price Commission.

asked the Secretary of State for Prices and Consumer Protection what representations he has had from consumer organisations in Scotland.

My Department has received a number of representations, notably from the Scottish Consumer Council, on a variety of questions.

Has any of them suggested how 150 Assembly persons in Edinburgh can do anything to keep prices down?

No, Sir.

asked the Secretary of State for Prices and Consumer Protection how many price control orders he has issued during the current parliamentary Session.

Seven, Sir.

Does the Secretary of State agree that if he wants to retain any credibility in getting down prices he must take action over a long period of time? Does he appreciate that to achieve that aim it will be necessary to ensure that prices are controlled, perhaps even by the use of sanctions, which unfortunately have been used by the Government against firms which pay over the 10 per cent. limit on wages? It is in that direction that he will have to look to keep prices down, especially where firms are not paying corporation tax and where there is very little dividend control. It is time the Minister looked to hammering the friends of—

Order. The hon. Gentleman is answering his Question as well.

I have always told the House, and I must repeat, that the way of getting inflation down and keeping it under control is by applying those general economic policies that have that effect. We have applied them over the past two years and I hope that we shall go on doing the same in the foreseeable future. However, my hon. Friend is right to say that we need an active Price Commission acting against unreasonable price increases—that is what has happened in the past year—and if its powers are to be changed they should be made stronger rather than weakened in any way.

The right hon. Gentleman said that the Government have applied these policies for the past two years. What were they doing for the first two years?

As subsequent answers will show, in the first two years we were wrestling with the inflation caused by the Conservatives when they were in power.

Can my right hon. Friend tell us how many prices have been frozen by the Price Commission? How does he describe the support given by the Tory Opposition for price control legislation—enthusiastic, grudging or non-existent?

A number of prices have been directly frozen by the Commission. As I said in my original reply, seven orders have been made. Much more significant is the indirect effect of the Commission's operations because companies have been deterred from even proposing frivolous or unnecessary price increases by the existence of the Commission. This point was made by the hon. Member for Gloucester (Mrs. Oppenheim) during a speech in her constituency when she said that the Price Commission was holding down prices and inhibiting profits. She was not in favour of that, but she acknowledged that it was happening.

asked the Secretary of State for Prices and Consumer Protection what has been the effect of the Price Commission on the retail price index since 1st August 1977.

The rate of inflation has been reduced by more than 50 per cent. since 1st August 1977 The work of the Price Commission has made a valuable contribution to this notable achievement.

In the light of that answer, does the Secretary of State agree with his previous comments in a newspaper interview that the work of the Price Commission has made only a mar- ginal difference to the rate of inflation? Is not the work of his Department really a public relations exercise?

Not only do I agree with the answer I gave in that newspaper interview, but I agree with the supplementary answer that I gave to a previous question, which was that the way inflation is brought under control is by applying the right sort of economic policies. The Price Commission can have only a marginal effect, but it has a significant effect in that it assures people, which is absolutely right, that unnecessary price increases will not be allowed to go ahead. Sooner or later, the Conservative Opposition will have to make up their mind whether they want to stop the Commission holding back specific prices or whether they do not.

Is it not clear from the Opposition's attitude to the Price Commission that they are in favour of some wage increases but of all price increases?

If there is any evidence that the Opposition believe that price increases that have been directly or indirectly prevented by the Price Commission should have been prevented, I have yet to see examples of it. We have never had a Prayer against the Commission's behaviour, but we have also never had a word of support for the action it took over tea, cement and soda ash and in all its other actions that have been of benefit to the country. I say again that sooner or later the Opposition will have to make clear whether they are glad or sorry that those prices were held back.

May I refer the right hon. Gentleman to his speech in Barnsley on 24th June, when, as he has just reminded us, he said that the Commission had had a material effect on prices in housewives' weekly shopping baskets—and he quoted tea, soda ash, cement and fertiliser. Does he think that the electors of Penistone were impressed by such an argument? Why does not the kidding stop, and why does he not scrap the whole thing?

As I have had a previous opportunity of pointing out, I thought that the by-election results last Thursday were rather good, particularly since the Shadow Chancellor of the Exchequer and I agreed before the television programme on which we appeared that there was no hope of Labour holding Manchester, Moss Side. Having said that, I believe that the country recognises absolutely the achievements of the Government in reducing the level of inflation to 7.4 per cent. on the RPI. All the evidence is that people understand the work we have done and support us in it.

asked the Secretary tary of State for Prices and Consumer Protection when he expects next to meet the chairman of the Electricity Consumers' Council.

My right hon. Friend is always ready to meet the chairman of the Electricity Consumers' Council but has no immediate plans for such a meeting.

Does the Minister or the Secretary of State get the impression that the Electricity Consumers' Council is satisfied with the efficiency of the British electricity industry? Is it not a fact that British generating and distribution costs do not compare well with other electricity industries of a comparable size throughout the world and that, therefore, the consumer is paying more per unit for electricity than he would if the industry were really efficient?

The first thing to recognise is that the industry is now recovering from the policy pursued by the Conservatives when they were in power and is getting back on to the sort of commercial footing which the Conservative Government would not allow it to achieve. As to the views of the council, I follow with great interest the evidence given to the committee of which the hon. Gentleman is a member and I hope shortly to meet the chairman to discuss the council's views.

Does my hon. Friend agree that the higher unit costs in distribution, compared with certain commercial undertakings abroad, may be due to the fact that the electricity authorities in this country provide a service, very often at a loss, to all the people of this country—even those in remote areas?

The electricity industry does provide such a service, but the questions raised by my hon. Friend and by the hon. Member for Mid-Sussex (Mr. Renton) are the subject of scrutiny by the Price Commission in determining whether particular tariff proposals should be permitted. Questions of unit cost and the like fall squarely within the Commission's remit. The Conservatives gave no support to the examination of the electricity industry in this way.

Has the Minister thought about having an investigation made into the efficiency of the electricity industry in this country? Has he seen the press report which quoted the Secretary of State for Energy as suggesting that we should ban all coal imports? Would not this have the effect of increasing electricity costs in this country?

The Price Commission has already made at least two examinations of the electricity industry and has recently published a report on the South of Scotland Electricity Board, which we are considering with great interest and which reflects on some of these matters.

asked the Secretary of State for Prices and Consumer Protection whether he will give the increase in food prices since February 1974 to the latest available date.

asked the Secretary of State for Prices and Consumer Protection whether he will give the increase in food prices since February 1974 to the latest available date.

asked the Secretary of State for Prices and Consumer Protection what has been the increase in food prices since February 1974.

The food price index in mid-June had increased by 1049 per cent. since February 1974—

Disgraceful.

Order. Hon. Members do not know what is coming.

However, in the 12 months to June 1978, food prices rose by only 6.7 per cent., the lowest annual rate other than in the current year, since May 1972.

Does not the Minister think that that is a disgraceful admission of failure by the Government? Does not he further consider that the Secretary of State for Prices and Consumer Protection, with all his arrogance, should now resign? Where in their 1974 manifesto did the Government promise to raise food prices by more than 100 per cent. in four years? Is the hon. Gentleman aware that the Secretary of State is now the housewives' public enemy no. 1 and the biggest basket of them all?

After that rhetoric, which seems more appropriate to an election than to the House of Commons, I should point out that the facts should be regarded by the House as extremely encouraging because, for the ninth consecutive month, the annual rate of food price increases has been below the general rate of inflation. The hon. Gentleman should also note with satisfaction that the rate of inflation in food prices is one-third of the rate at this time last year.

rose—

Order. Before I call anyone else, did the hon. Gentleman, in his closing words, use an offensive expression about the Minister?

I said that the Secretary of State for Prices and Consumer Affairs was the biggest basket of them all.

I advise the hon. Gentleman to remember where he is.

Is the Minister aware that in a Written Answer which he gave on 23rd June he stated that the only part of the price increase that could be blamed on the Common Market was 1.7 per cent.? So let us have no more talk from below the Gangway opposite that it is the Common Market which has caused this increase; it is the present Government and their devaluation of our sterling.

The hon. Member has overlooked the fact that earlier this year the Opposition proposed the devaluation of the green pound, which would have resulted in a substantial increase, which the Government resisted. Due to the action of my right hon. Friends; by phasing that devaluation, we have succeeded in saving the British housewife £50 million.

Is not the Minister ashamed of this increase in food prices?

I think that it is highly regrettable that in the past five years food prices have increased substantially throughout the world. It is noteworthy that the rate of increase in this country is now substantially below that in a number of other countries in the developed world, including the United States of America and France.

Will my hon. Friend try to explain to the hon. Member for Macclesfield (Mr. Winterton)—although, of course, he may find it slightly difficult as the hon. Member is not too quick on the uptake—that there is direct correlation between the price of food in this country and our entry into the Common Market? Does my hon. Friend agree, whether the hon. Member likes it or not, that it is the tariffs imposed at the point of entry which affect prices in the shops?

It is a fact that at the beginning of this year we completed our movement throughout four transition phases. This had the effect of raising food prices in this country. These arrangements were entered into by the Opposition.

On the question of bringing food prices down, which will help to reduce inflation, why do the Government go on paying the 50 per cent. levy on hard wheat imported from Canada when the Common Market does not produce any? That adds about 4p or 5p to the price of a standard loaf. Why do not the Government do something about it?

The hon. Gentleman should note, in respect of the common prices and the levy arrangements, that the Government have achieved substantial successes and, this year, have succeeded in bringing down the rate of common price increase to 2½ per cent.

Answer the question.

The hon. Gentleman says "Answer the question." I am answering his question in my own way. The hon. Gentleman chooses to single out a particular item from a package. He must look at the whole picture and realise how successful the Government have been in holding down the level of common price.

Does my hon. Friend agree that one of the problems is that hon. Members—unfortunately, including some Ministers—try to defend an impossible position over the Common Market? Does he further agree that, if we are absolutely honest about it, we must admit that the public enemy No. 1 is the Common Market, and that the 104 per cent. increase is due to our entry to the Common Market and nothing else? That needs to be said time after time after time.

The deficiencies of the common agricultural policy have been reiterated by the Government on a number of occasions, and most recently by the Prime Minister at the meeting in Bremen where he succeeded in obtaining from his colleagues, at the Heads of Government meeting, the most important assurance that the common agricultural policy would be reviewed and the Commission would be invited to produce proposals for the next Council meeting. The Government have never been in any doubt about the importance of this aspect, in resource terms particularly. My hon. Friend is wrong to attribute the full price increases which have occurred over the past few years—throughout the world and not simply in the Community countries—to the common agricultural policy.

Is the Under-Secretary aware that the House and the country will have noted that the Secretary of State is too yellow to answer this most important Question?

Order. I hope that the hon. Lady is not making a charge of cowardice, because that is unparliamentary.

If you wish me to qualify my remarks, Mr. Speaker, I replace the word "yellow" with the word "timid". Is the Under-Secretary aware that if the most that the Prime Minister and the Secretary of State can offer the country—after more than doubling food prices after four and a half years, after reducing the purchasing power of the pound to 51p, after raising prices by over 93 per cent., after nearly four years of double figure inflation—is a mere further six months of single figure inflation before they return to double figure inflation, who do they expect to cheer that performance? It is an insult—

Order. I think that that is enough for the time being.

I must express regret that, due to the barracking by the hon. Lady's hon. Friends, I heard no question from her at all after the first phrase. I have always answered Questions on food prices: there has been no change in practice. The news which I gave in my initial reply, that food prices rose by only 6·7 per cent. year on year—the lowest annual rate since May 1972—shows how the Government are getting on top of the problem of food price increases.

On a point of order, Mr. Speaker. Would you advise me whether the word "funk" is parliamentary?

Ask me again later.

asked the Secretary of State for Prices and Consumer Protection what is the latest figure for prices in the retail price index.

asked the Secretary of State for Prices and Consumer Protection whether he will give the increase in the retail price index since February 1974.

asked the Secretary of State for Prices and Consumer Protection what is the current rate of inflation.

The retail price index in June stood at 197·2. This represents an increase of 93·9 per cent. since February 1974, and an increase of 7·4 per cent. in the last 12 months.

Despite the freneticism of the hon. Member for Macclesfield (Mr. Winterton) and the vulgar outburst we have just witnessed from the hon. Member for Gloucester (Mrs. Oppenheim) over price increases, does my right hon. Friend agree that the Conservatives kept the House going for nearly 48 hours, opposing any control of prices? Is not their behaviour this afternoon disgraceful? Is he aware that his contribution in this matter has dramatically aided the fight against inflation, in getting the co-operation of the trade unions and the CBI, and that all this appalling business we have witnessed this afternoon is in opposition to co-operation—

Order. I can see that I am in for a very rough fortnight. May I ask hon. Members to try to be brief, in the interests of their colleagues whose Questions are lower down on the Order Paper?

Is my hon. Friend aware that what he is doing, and what causes the Opposition to be annoyed, is making a contribution to the fight against inflation in the interests of our country and our people?

I am very grateful to my hon. Friend. I rejoice in the fact that some of the contributions made by Opposition Back Bench Members are being broadcast into about 1 million homes at the moment. These people will no doubt make their own judgment of the character and the conduct of the Tory Party.

You worry about food prices.

On a more important note than the character and conduct of the Tory Party, the point made by my hon. Friend is important in that success in bringing inflation under control over the past two years has been the result of the activities of every member of the population. There has been a contribution made by the trade union movement, which has shown wisdom and restraint. What I hope is that those who are not irrevocably prejudiced in these matters will wish the Government well in their attempt to achieve next year the sort of success on inflation that we have had last year so that we can genuinely get the country back on to a proper inflation path.

Will the Secretary of State take this opportunity to correct an impression given by his right hon. Friend the Prime Minister during Question Time last Tuesday that a large amount of this deplorable increase was due to our membership of the European Community? Will he make it quite clear that he is in agreement with the answers given by his departmental colleagues to the effect that this factor accounts for no more than 2 per cent. to 3 per cent. of the increase at the outside? Will he recognise that this enormous increase is totally as a result of the Government's deplorabe policy and atrocious success rate?

Tory Members normally confuse the different indices intentionally. I think that the hon. Gentleman's confusion is a genuine mistake. I do not argue for a moment that the increase in the RPI is about 1·7 per cent. to 2 per cent. as a result of membership of the Common Market. With the food index, about which the Tory Party has just made such a fuss, the increase is much larger than that because of the relationship between the food index and the RPI and because of the common agricultural policy's effect on food. Despite my unallayed enthusiasm for British membership of the EEC, I cannot pretend other than that the CAP has had a material effect on food prices in this country.

Will my right hon. Friend accept that his announcement of a 7·4 per cent. increase in the retail price index will be welcomed by millions of consumers in this country? Will he also agree that the action of the Government in reducing inflation to this level, with the full co-operation of the trade union movement, will go a long way to ensuring the return of a Labour Government at the next General Election?

I hope and believe that both of those statements are true. More important in the immediate future is the need to ensure that we continue with the policies which have brought success over the past two years. I can only repeat that the Tory Party, in trying to diminish the achievements of the British people and trying to pretend—

Hear, hear.

The hon. Member says "Hear, hear". The Tory Party, in trying to diminish the achievements of the British people, is making it much more difficult for a successful policy on inflation to continue. I believe that we shall triumph over that, but what I hear from the Opposition Benches scarcely makes it sound like the party of patriotism.

To put the Secretary of State's statement in perspective, is it not the case that whereas our rate of inflation is down to 7·4 per cent—a low point and now likely to rise—West Germany's rate of inflation is down to 2·4 per cent.? What plausible explanation is there for our rate of inflation being three times worse other than four and a half years of Labour Government?

This selective use of figures gets sillier and more transparent every time it happens. The fact is that today the British inflation rate is lower than the average rate in the OECD. That is an enormous achievement.

asked the Secretary of State for Prices and Consumer Portection what is the retail price per ton of frozen chips at the latest available date; and how that figure compares with the prices during the corresponding dates of 1974, 1975, 1976 and 1977.

The information is not available in the precise form requested, but I will circulate in the Official Report the data that are to hand. They show that the average retail price of frozen chips and other frozen convenience potato products fell by 47 per cent. in the 12 months to April this year.

Does my hon. Friend realise that last year's potato crop was the best for three years? Is he aware that, in spite of that, the buyers and sellers of potatoes and frozen chips—who are friends of the Tory Party—have kept prices high? Is he further aware that because of the high price of potatoes we are importing frozen chips? Will he for goodness sake keep a more watchful eye on this and have discussions with the Secretary of State for Trade to see whether we can stop the importation of frozen chips?

I am glad to be able to report that the price in pence per pound has fallen from 30·63p last year to 16·17p this year The price for frozen potato products was, on average only 1p per pound more expensive in April of this year than it was in 1975

Irrespective of my hon. Friend's reply, may I ask him whether he is aware that people of no political persuasion are asking Members of Parliament why it is that in a year when there has been a better potato crop than ever before potatoes are being destroyed? It is not only that we are importing them; if we have the damned things, why do we not sell them cheaply?

My hon. Friend did not, perhaps, hear the answer I gave earlier, which was to the effect that the price of frozen potatoes—about which this Question is principally concerned—has dropped dramatically by 47 per cent. in the past year. That reflects the lower producers' costs to which he has referred.

asked the Secretary of State for Prices and Consumer Protection if he is satisfied with the law protecting consumers so far as house prices are concerned.

Yes, Sir. Policy on housing and house prices is primarily the responsibility of my right hon. Friend the Secretary of State for the Environment. Though house prices are not subject to price control legislation, the Government and the Building Societies Association jointly monitor trends in the housing market. My right hon. Friend set out the nature of the current arrangements in reply to a Question by my hon. Friend the Member for Newham, South (Mr. Spearing) on 9th June.

Does the Minister agree that the best protection for consumers, when it comes to house prices, is to make sure that the house building industry remains firmly in private hands?

I do not know about that, because in the first four years of the Labour Government house prices rose by 30 per cent. whereas in the last four years of the last Conservative Government they rose by 100 per cent.

Is it not the case that a modest measure to increase consumer protection for house purchasers was wrecked by the narrow interests of a small group of Tory Members? Will not they be held to account for that outrageous action?

I am sorry that my hon. Friend's Estate Agents Bill failed to complete its passage last Friday because of fiibustering by some Tory Members. It is certainly my intention to try to reintroduce the legislation at the earliest possible moment.

Is there not a serious flaw in consumer protection as it affects housing in that integral heating systems are often not included in the protection that is given to consumers? Will the Minister do something about this?

The hon. Gentleman has written to me, as have members of the public, about this problem. I am examining it.

If the Minister is as complacent as he sounded in his reply to this Question, may I ask why it is that, since the Government asked the building societies to reduce mortgage lending, so as to have some effect on house prices house prices have continued to rise substantially?

The figure is the other way round. Since the arrangements were introduced, there has been a moderation in the increase in prices. Perhaps I can add that the investigations under restrictive practices legislation have found that private enterprise does not always mean an absence of price fixing.

asked the Secretary of State for Prices and Consumer Protection whether he has completed his review of petrol price displays.

Yes. The review has shown that the Petrol Prices (Display) Order is working well and has ended most of the misleading displays which were so common before its introduction However, a few abuses remain, notably the practice of making discount prices apply only to the purchase of complete gallons, with any part gallons being charged at a significantly higher price.

I thank my hon. Friend for that useful reply, but may I ask him to turn his attention to the practice common in so many garages, which will be familiar to hon. Members, whereby the number after the decimal point, usually a nine, is printed in about the same size lettering as the decimal point itself? Does he accept that, while his Department may describe that as being advertisement by non-tenderable fractions, or "NTF" as I believe it is called, my constituents regard it as a swindle?

Not only do I sympathise with my hon. Friend's point, but I intend that the statutory requirement shall be that the price displayed in decimal points shall be in the same size and boldness as the main whole number. I think that that should stop deception of the kind to which my hon. Friend has referred.

Reverting to the general subject of the price of petrol, will the Minister inquire why it costs up to 10p a gallon more in my constituency, and possibly in his, than in London? That seems much more important than the price of half gallons.

I have had some correspondence with a number of hon. Members on this matter. A number of inquiries have been carried out. The Monopolies and Mergers Commission is currently conducting an inquiry into the wholesale supply of petrol, the results which I hope to have by the end of this month. It should then be possible to see whether the Government can do anything to deal Arith this serious problem.

asked the Secretary of State for Prices and Consumer Protection if the cost of living has yet doubled since February 1974

No, Sir.

Will the right hon. Gentleman accept our congratulations on answering Questions about price increases where the figures are marginally under 100 per cent.? We noted his reluctance to answer questions where prices exceeded 100 per cent. As he failed to answer the question put by my hon. Friend the Member for Macclesfield (Mr. Winterton), will he tell me where in this document the increases in food prices that have taken place are mentioned? Will he also remind the House whether the Chancellor's arithmetic about 8·4 per cent. in October 1974 was accurate?

I look forward to answering Questions about shorter indices later this afternoon. On the hon. Gentleman's original point, every month I witness his attempts to prove that inflation began on General Election day 1974. That is a difficult thesis to sustain. If he does not believe me, I hope that he will join me in a common enterprise: to ask the right hon. Member for Sidcup (Mr. Heath)—I believe that they are all now on speaking terms again—to agree to the publication of the last inflation forecast received by the Conservative Government in the way that we publish inflation forecasts under the Bray amendment. If the former Prime Minister will agree to publish that forecast, it will make it absolutely clear that the Conservative Government knew that inflation was taking off and that they did absolutely nothing about it.

Does my right hon. Friend agree that the rate at which the rate of inflation is changing is what really matters? Does he further agree that in February 1974 the change in the rate of inflation was high and positive and that the same rate of change is now high and negative? In view of the latest industrial figures and the accumulated value of the pound relative to world currencies, does he agree that there is now a good chance that the rate of inflation might fall even further?

My forecast remains that the rate of inflation will stay during this year at or about its April figure, which was 7·9 per cent. Regarding the right index to choose, not only do I agree with my hon. Friend, but in months past the Opposition agreed with him. When the RPI was running at 26 per cent. they were not conjuring new figures out of the air; they were concentrating on that figure. They abandoned the annual RPI only when it was moving in favour not only of the Government but of the people of this country. I regard that as a highly disreputable technique.

Will the Secretary of State bear in mind that to the ordinary housewife the question put to him by his hon. Friend the Member for Cannock (Mr. Roberts) is sheer gobbledegook? The thing that really matters to the ordinary housewife is that, as she gets her shopping week after week, she finds that prices keep on rising.

That is not what the ordinary housewife—a patronising term that I should not employ—finds. That is not what women, and men, for that matter, who do shopping, find. They find a remarkable degree of price stability from one week to another. The reports of surveys demonstrate, as was put in a simple sentence in one newspaper, what one lady said: that this week's shopping money now buys last week's groceries and the week's before as well. That is what housewives and others are finding.

asked the Secretary of State for Prices and Consumer Protection what have been the changes in the retail price index at annualised rates over the last three months, the last six months and the last 12 months, respectively.

asked the Secretary of State for Prices and Consumer Protection whether he will give the increase in the retail price index, all items, over the last three months expressed at an annual rate.

The 12-month increase in the retail price index has been 7·4 per cent. to June. The index has risen at an annual rate of 11·7 per cent. in the last three months, and 9·6 per cent. over the last six months.

Does not the Secretary of State's reply illustrate that we are in the numbers game here? Will he tell the House which of the various periods selected gives the fairest interpretation of the ongoing rate of inflation? Does he realise that we can play with figures as we like but that the reality of what goes on in ordinary shops reflects our views on the rate of inflation? I assure him that it is still going up.

Of course, it is still going up. If I am taking part in the numbers game contest, I am doing so because I answered the hon. Gentleman's Question exactly. If he wants me to choose one index, I choose the index that I regarded as the right measurement in good months and bad for the last two years. When the annual RPI was running at 26 per cent., I said with reluctance that was the best measure of inflation. Now that it is running at 7·4 per cent., I say the same thing. It is the best measure of inflation. It is others—notably Opposition Members—who have chosen whatever index from month to month happens best to make their party case.

Does the Minister accept that in my constituency a person who bought an annual season ticket in June this year would pay £400 whereas precisely 12 months previously it was £298? That is a rate of increase of 34 per cent. The facts are on the record. If we want to be very charitable and kind and divide it by two, because it covers two years, it is still 16 per cent. Those rates of increase are intolerable to the ordinary commuter. Does the right hon. Gentleman regard that as a success or a failure of the operation of the Price Commission or as none of its business at all?

I do not regard it as a great act of charity to divide two years' price increases by two to get the annual figure. That seems to me to be elementary arithmetical prudence.

Are not the two critical, truthful and important statistics about the rate of inflation, first, that when we came to power in February 1974 inflation was 16·9 per cent. and rising and that it is now 7·4 per cent. and at least stable and probably falling and, secondly—the Opposition do not like this —that it is now below the OECD average and below the rate of the majority of OECD countries?

That is all absolutely true. I should add that before we came to power the Conservative Government knew and anticipated that the rate of inflation would rise, according to their policies, to about 25 per cent. during the next year.

Does the Secretary of State accept that the Opposition entirely accept that he wants to make the most of what is probably his last opportunity to answer Questions from us for many years to come? Before he gets carried away with the flow of his own pomposity, as he has already said in many speeches that he knows precisely what factors will affect the inflation rate for the rest of this year, will he say what the inflation rate will be at its highest point this year? Will it be 8 per cent., 8·8 per cent., 9·9 per cent. or 10 per cent?

We know its highest point this year.

My hon. Friend the Member for Cannock (Mr. Roberts) is right. I know what its highest point will be this year because we passed it on the way down four months ago. I think that the question that the hon. Lady was struggling to ask was what would be the highest point between now and Christmas. The facts for that period are as I described them in Birmingham six weeks ago. The inflation rate will fluctuate around that April figure, which was 7·9 per cent. What happens after Christmas will depend upon the policies we apply between now and Christmas. It is my earnest hope and belief that we shall continue the improvement next year. As for this year, however, in spite of the strange denials of the judgment that the hon. Lady made five weeks ago, that 7·9 per cent. figure is how it is and it is how it will remain.