with To from 1967-1968 to 1969-1970. The national income at current prices, on the other hand, was growing at 6.

4
percent annually from 1946-1947 to 1949-1950; 6.9 percent from 1950-1951 to 1955-1956; 7.9 percent from 1956-
1957 to 1960-1961; 6.9 percent from 1961-1962 to 1966-1967; and 10.8 percent from 1967-1968 to 1969-1970.
Table 21 give us some broad insights into the unabated uptrend in the consumer price index from 1957 to
1970, with 1957 as the base year (1957 = 100). The consumer price index for all items rose further 100.0 in 1957 to
180.7 in 1970, or a net rise of 80.7 percent points for the period. In 1971, the 1971, the consumer price in des rose
further. This rise was due mainly to the institution of the “loating rate” system February 1970 which effected a defacto
devaluation of the peso. The consumer price index for food (on which practically all the income of the low-income
groups are spent) rose from 100 to 207.3, or a net increment of 107.3 points; that all clothing from 100 to 187.0 rent
and repairs, from 100 to 120.9; fuel light and water, from 100 to 144.8 an miscellaneous items, from 100 to 154.2 (See
Table 21).

TABLE 21
CONSUMER PRICE INDEX FOR THE Philippines, 1957-1971
(1957 = 100)
End of All Food Clothing Rent and Fuel and Miscellaneous
period Items Repairs Repair
1957 100.0 100.0 100.0 100.0 100.0 100.0
1958 102.5 104.3 102.6 100.3 101.9 100.2
1959 100.6 98.6 106.9 100.6 103.2 101.7
1960 105.6 106.0 112.8 101.4 103.7 104.0
1961 110.3 113.8 114.5 102.2 106.0 105.8
1962 113.6 116.6 121.4 103.2 108.8 109.4
1963 122.6 132.5 152.3 104.8 111.2 111.6
1964 133.5 151.2 129.6 105.7 116.9 114.5
1965 137.6 156.3 136.1 107.1 121.7 117.0
1966 144.5 167.0 142.1 109.0 123.0 120.0
1967 153.0 180.8 150.3 111.1 123.1 122.7
1968 154.1 179.9 155.7 114.3 123.1 125.7
1969 156.7 181.0 160.2 115.3 124.2 130.4
1970 180.7 207.3 187.0 120.9 144.8 154.2
1971 222.4 268.1 224.4 126.1 175.7 176.4
Source: Central Bank of the Philippines

It may be that rising prices serve as a spur to production. A modest increment in prices will encourage the
business sector to expand production. This would tend to generate the business sector to expand production. This
would tend to generate more employment opportunities, raise aggregate output and income and increase overall
effective demand.
Rising prices have been a major factor in widening the gap between the rich and the poor in this country. Due
to a time lag in production, a steady increase in government expenditures can contribute to the spiraling of prices.
In the light of the foregoing, there seems to be a constant need for re-examining fiscal, monetary and other
economic policies in relation to national goals.

77
 References

Boooks

Buchanan, James M. the Public Finances: an introductory textbook. Illionos, R. D. Irwin 1960. 553 p.
Chap.5
Colm, Gerhard and Peter Wagner. Federal Budget Projections. Washingston, D. C., Brookings
Institution /c1966/ 193. P Chaps. 6-9.
Committee on Public Finance. Public Finance. New York Pitman Pub. Corp. /c1959/. 798 p. Chaps. 3-11.
Hicks, Ursula K. Development Finance, Palnning and Control. New York, Oxford University Press, 1965. 187
p Chaps. 2.

Other Materials
Abello, Amelia B. pattern of Philippine Public Expenditures and Revenue, 1951-1960. Quezon City, Institute
of Economic Development and Research, University of the Philippines, 1964. 64 p. Chaps. 1-4.
Annual Reports of the Joint Legislative-Executive Tax Commission.
Annual Reports of the Civil Service Commission.
Annual Reports of the Department of Education.
Annual Reports of the Department of Health
Annual Reports of the Department of Public Works & Communication.

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