Barber: Rising inflation brings 'pressure to see pay rises'

The UK Consumer Prices Index (CPI) annual inflation rate rose to 4% in January, up from 3.7% in December, as the effects of the VAT rise were felt.

Higher oil prices also meant inflation remained well above the 2% target.

Retail Prices Index (RPI) inflation - which includes mortgage interest payments - rose to 5.1% from 4.8%.

The TUC general secretary, Brendan Barber, is warning that many workers will now demand pay rises to match the rising inflation figures:

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