Debts: Inflation

(asked on 11th January 2018) - View Source

Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, whether his Department has commissioned recent research on the effect of inflation on household debt.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 19th January 2018

The department has commissioned no such research.

The independent Monetary Policy Committee has the primary objective of maintaining price stability. This objective is defined as an inflation target of 2% as measured by the twelve month increase in the Consumer Prices Index.

Households’ financial positions have improved since the financial crisis: Household net financial wealth as a share of income is close to record highs; the debt to income ratio is significantly below pre-crisis levels; and debt interest payments as a share of income are at a record low.

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