Asked by: Jonathan Evans (Conservative - Cardiff North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential effect of the recent fall in global oil prices on the UK economy.
Answered by Andrea Leadsom
The US dollar price of crude oil has declined by around 42 per cent since its June 2014 peak, to $66 dollars per barrel in December.
Analysis by The Office for Budget Responsibility suggests that a temporary 20 per cent decline in the oil price could result in a 0.2 per cent increase in GDP and weaken CPI inflation by 0.25 per cent for one year.