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Pension increases will fuel inflation, senior official admits
Journal Staff Report

KIEV, May 7 – Prices of goods and food will grow slightly due to the increase in pensions as a part of social initiatives declared by Ukrainian President Viktor Yanukovych, although as a whole this would not lead to the considerable worsening of the economic situation, Social Policy Minister Serhiy Tyhypko said.

“We’re attentively monitoring the prices and believe us no one wants to be engaged in political suicide. If the government initiates the increase in social payments and the provision of aid to people with one hand and use another hand to take it away via uncontrolled prices – people would not understand this,” he said in an interview with the Fifth TV Channel on May 4, 2012.




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