LONDON (Reuters (LSE: TRIL.L - news) ) - Chancellor Alistair Darling warned on Sunday that pay awards should be kept in check to ensure they did not add to inflationary pressure in the UK economy.
"It's important that we don't allow inflation to become entrenched here at home," Darling told BBC television. "Pay awards in both the private and public sector have to be consistent with our inflation target, which is 2.0 percent."
Data released last week showed inflation reached its highest level in Britain in 11 years. Inflation rose to 3.3 percent in May, the highest since the Labour government came to power in 1997.
Prime Minister Gordon Brown announced last week that government ministers would forego their annual pay rise to set an example to other on wages.
(Reporting by Kate Kelland)