Prime Minister Yulia Tymoshenko denies there are economic grounds for bakers to increase prices of popular bread in Ukraine.

Tymoshenko gave her position at a conference call meeting with the heads of regional state administrations.

"I see no grounds to increase bread prices," she said.

Tymoshenko said the grain harvest campaign was underway and there were remains of last year's grain harvest at elevators.

Prime Minister Tymoshenko said the government might appeal to the Prosecutor General's Office to check grounds for raising bread prices.

Tymoshenko asked the regional governors to personally supervise the prices of bread in regions.

As Ukrainian News earlier reported, Khlib Kyeva postponed the increase of retail prices for social kinds of bread by 64.3-92.7% to UAH 2.30-3.16 per loaf and agreed to negotiate with the Kyiv city state administration to jointly decide on prices.

The Kyiv city state administration hopes to settle the matter of bread prices in Kyiv at a session of the Kyiv city council on July 17.

In June the prices of bread baked the first grade flour did not change in June in 22 regions.

The prices were between UAH 2.46-3.13 per kilogram.