Russian President Vladimir Putin sought to reassure the public In the face of rising inflation, on Wednesday by announcing increases in pensions and social benefits.

“From June 1, I plan to increase the pension by 10 percent for non-working retired people,” Putin said at a televised meeting with officials including regional governors.

Pensions will increase at a rate “greater than the level of inflation,” he claimed because a comparable indexation took place in January.

Inflation reached 17.8 percent year-on-year in April, the highest for 20 years.

Putin nevertheless said that “according to experts, the growth in inflation has slowed” and should not exceed 15 percent for the year as a whole.

He also promised that the minimum wage would be raised from June by 10 percent to 15,279 rubles (240 euros at the current exchange rate), while there will be hikes to other benefits, particularly for women in the military with young children.

The effect of harsh Western sanctions on Russia are beginning to weigh on the Russian economy.

Russians’ purchasing power has been eroded by record inflation and the shift of many people to part-time work, and the majority do not have significant savings.

The Russian government predicts that GDP will contract by up to 8.8 percent in 2022, while the central bank predicts a more pessimistic 8 to 10 percent contraction.