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: