asked the Minister for Industry and Commerce if he will state whether any investigation has been made into the extent of increases in prices of commodities imported into this State following upon the devaluation of the pound, and whether he is in a position to state the effects of devaluation upon the prices of food, raw materials and tobacco imported from non-sterling areas.
Ceisteanna—Questions. Oral Answers. - Import Prices.
Import price indices for October and November, 1949, are not yet available but the wholesale price index for October showed an increase of only 3 per cent. over September as compared with an increase of 2.8 per cent. in the corresponding British index.
The effects of devaluation on the prices of essential goods imported into this country have been engaging the attention of the Government and the situation will continue to be watched carefully. It would be unwise either to oversimplify this question or to indulge in prophecy about the future trend of the prices of imported goods. World prices are, of course, subject to many influences, some of which are quite unconnected with devaluation and some of which arise out of it only indirectly.
The Deputy refers to the prices of certain imports from non-sterling areas but he is, no doubt, aware that many countries outside the sterling area have devalued their currencies in line with sterling while other countries have partially devalued. This, and other factors, make it difficult to make any general assessment of the situation.
It is the Government's firm intention to ensure, as far as is possible, that no unjustifiable increases in domestic prices will be permitted.
May I ask whether any statement on the lines of those of the Statistical survey recently issued will be made in the Trade Journal or otherwise?
If it is possible. I have indicated that this is a matter of extreme difficulty and the trends are not possible to assess at the moment.