"The Government will look for all legal possibilities within its powers to guarantee the stability of personal incomes and their increase," Prime Minister Sergei Stanishev said on Wednesday, answering a question about the cabinet's measures in connection with rising prices, BTA reported.

Stanishev said he will confer with Economy and Energy Minister Peter Dimitrov on the analysis of prices and inflation levels, and on the measures which can be taken by the government, which follows closely these processes. According to the Prime Minister, the Economy and Energy Minister should confer with the State Commission on Energy and Water Regulation in connection with electricity prices and their reasonableness.

The Prime Minister said the general picture in the entire EU and in the world is for an appreciation of staple products. He said inflation was higher last year. So far this year, the trend is for inflation to decrease: in January it was 1.4 per cent, in February 1.1 per cent, in March 0.8 per cent and in April 0.7 per cent.

Asked whether a decrease of VAT can be considered, Stanishev said it is hardly possible to consider a VAT increase this year. He noted that every economic measure should be carefully thought through, because it should be seen how it affects national budget revenues.