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Inflation: Debts

Question for HM Treasury

UIN 4384, tabled on 11 July 2017

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

Answered on

17 July 2017

The department has not commissioned research on this subject.

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.

Household financial positions are stronger than before the financial crisis: net financial wealth as a share of income is close to record highs; debt to income is below pre-crisis levels; and debt interest payments to income are at a record low.

Answered by

Treasury
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