6 OCTOBER 1990, Page 24

LETTERS Inflation link

Sir: 'To stop Inflation go for Indexation'. Let the Chancellor announce the immedi- ate end of all official index-linking, includ- ing pensions. A modest beginning has already been made with family allowances (women and children first?) followed apparently by a loss of nerve.

An end to all indexing would cause such a rise of the pound that interest rates would have to be slashed immediately.

Index-linking is not of course, a cause of inflation but it is certainly its principal life-support. Cart before the horse? An excellent way to bring cantering inflation to a walk if not a standstill.

Michael Samuelson

HoRingwood, Stunts Green, Hai!sham, Sussex