A new report from the United Nations shows how the lives of urban poor in Myanmar's largest city of Yangon have worsened since the military coup two years ago.

The UN Development Programme released the results of a survey of 3,000 people living in the city.

It says a quarter of those in the poorest eight townships of Yangon have often not earned any income in the last 12 months.

More than 40 percent have sold assets, such as vehicles, to support themselves. And a quarter of households have taken their children out of school.

Fighting between the military and pro-democracy forces has intensified in recent months.

On Saturday, resistance forces ambushed a police station of the ruling junta in the southeastern state of Karen. Media reports say the military responded with shelling, leaving some residents injured.

Last week, the European Union slapped fresh sanctions on nine people and seven entities related to the junta, saying they have escalated violence and committed grave human rights violations.

But there are increasing concerns that sanctions imposed by the international community may further damage Myanmar's economy and its citizens' lives.