Kiev  - The leaders of Ukraine's razor-thin ruling coalition on Tuesday traded barbs and open threats over galloping inflation in the former Soviet republic.

President Viktor Yushchenko and Prime Minister Yulia Tymoshenko, leaders of the two wings comprising the pro-Europe majority currently ruling Ukraine's parliament, accused each other of responsibility for Europe's highest inflation rates, as of last month increasing in Ukraine at a 50 per cent annual pace.

"The government and parliament are doing absolutely nothing... and inflation is the single largest threat to the stability of our economy," Yushchenko told a Kiev press conference.

"I call once again on all to lay aside their political differences, to deal with this danger," he said in comments carried by the Channel 5 television news channel.

Parliament's failure to consider anti-inflation legislation since its formation early this year was unacceptable and harmed the national interest, Yushchenko claimed.

Yushchenko's remarks to media came mid-morning on Tuesday, when the Orange Revolution leader had been scheduled to give an annual state-of-the-nation speech to parliament.

MPs loyal to Yulia Tymoshenko, Yushchenko's immediate subordinate and his ally during the 2004 pro-democracy demonstrations, prevented Yushchenko from talking to the legislature by forming ranks around the speaker's lecturn, and refusing to move.

Political parties led by Yushchenko and Tymoshenko allied after last year's parliamentary elections, giving the pro-Europe politicians control of the country's legislature and executive branch.

"This is an unprecedented event in our 16 years of political history," said Areseny Yatsteniuk, parliament speaker and a Yushchenko ally. "It is shameful that events could come to this."

A visibly angry Tymoshenko responded with a press conference of her own less than an hour after Yushchenko made his remarks, accusing Yushchenko of lying about who was responsible for galloping inflation, and the government's failure to do anything about it.

"As is well know, no one else but the secretariat of the President (President's office) is responsible for placing legislation on the parliament docket," Tymoshenko charged.

"Unfortunately for the four months we have been in (control of) parliament, not once has such legislation been introduced," she said.

Yushchenko in remarks earlier in the day laid blame for non-consideration of anti-inflationary legislation at parliament's door, noting that by constitution statute parliament must approve all legislation brought to the floor of the house for debate.

The Tymoshenko and Yushchenko blocks of the ruling coalition have for months failed to agree on a common anti-inflationary policy, and by most standards share responsibility for the non-adopted legislation, observers said.

Rocketing prices particuarly for food and energy have placed the government's 2008 budget in jeapordy, threaten to stall Uraine's once-booming economy, and have substantially weakened the ruling coalition's popularity with voters.

Ukraine's Presidential elections are scheduled in for 2009. Both Tymoshenko and Yushchenko are widely considered the top candidates to run for Ukraine's pro-Europe political parties.

Tymoshenko in her televised remarks repeated past claims she is "not running for President now, but working every day to improve the lot of average Ukrainians." (dpa)