XN000022-1974-03-13 — Page 14

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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 .******