Index may be up 4.7%

Press, 7 July 1977, Page 1

Index may be up 4.7%

Parliamentary reporter Bad news for taxpayers and the Budget planners is expected when the Consumer Price Index for the Quarter ending June 30 is announced in a few days time.

Predictions have all been that the increase would be above that for the March quarter. Some Opposition members have claimed that it would be as high as 6.1 per cent, compared with 2.6 per cent for the previous quarter. However, the increase is likely to be slightly worse than 4.7 per cent, a shattering commentary on the measures so far adopted by the Minister of Finance (Mr Muldoon) in his efforts to control inflation. The inference is that the economic situation is considerably worse than has so far been indicated by the Government. Logically, this could pave the way for a much firmer line to be taken in the Budget, which is expected to be announced later this month.

Only three days remain In which Mr Muldoon could report to Parliament on the financial and economic situation or on other aspects of the world scene learned by him during his recent tour. Parliament is scheduled to rise at 1 p.m. today for a recess lasting until July 19. The Budget could be presented on July 21, although July 28 is considered a likelier date, even though the annual conference of the National Party will begin in Dunedin the next day.