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Wednesday, March 13, 1974
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PRICE STABILIZATION BODY PROPOSED
To Check Rising Prices
Dr. the Hon. S.Y. Chung today called for the setting up of a
price stabilization committee to find ways and means to reduce the rate
of inflation.
Speaking during the resumed Budget debate Dr. Chung said that
the committee should consist of senior government officials, economic
experts and community leaders.
He pointed out that it was during the first half of last year
when the significant rate of inflation began to creep in, By June
1973, the 12-month moving average of consumer price index had gone up by
10 per cent as compared to that of a year ago.
"Three months later, by September last year, it moved up to
15 per cent and at the end of 1973 the average annual rate of inflation
reached almost 20 per cent which is the highest since 1963/64 when the
index was introduced," he said.
On the other hand, Dr. Chung went on, nominal wage increase during
the same period was only 11 per cent.
Therefore, for the first time since real wage index was compiled
in 1963, there was a reduction in real wages of nine per cent in the
manufacturing industry and of seven per cent in all industries.
/Turning to .******