The underlying rate fell to 3.6 per cent, with Germany at 3.7.

But despite the rise, caused largely by higher gasoline prices, the report showed that the underlying rate of consumer inflation remained in check.

Is it not also the case that the underlying rate was 5.9 per cent.

My hon. Friend is drawing attention to an important point about the underlying rate of inflation.

Figures released on the Tuesday, showed a stronger than expected underlying rate of inflation of 3 per cent.

Thus far, the underlying rate of inflation has yet to show many signs of being pushed higher by the surge in oil prices.

Our own estimate of the index's underlying rate is 6 to 6 1/2 percent.

For the Consumer Price Index, our estimate of the underlying rate is - 5 1/2 to 6 percent.

To find the underlying rate of inflation, it is necessary to look past such distortions.

The underlying rate of inflation, excluding food and energy costs, is modest - at about 1.3 percent.