Last updated 11:40, Wednesday, 16 July 2008

RISING food and fuel costs pushed UK inflation up to an 11-year high of 3.8 per cent in June from 3.3 per cent in May.

The RPI inflation measure – often used as a benchmark in pay negotiations – rose to 4.6 per cent in June from 4.3 per cent in May.

Commenting on the figures, Chancellor Alistair Darling called for wage restraint in order to help rein in price growth.

He said: “We saw what happened in the past when inflation got out of control and people found that every penny they got in a wage increase was swallowed up by prices going up.

“Whether you are in the private sector or public sector, whether you are sitting in the board room or working on the shop floor, we cannot allow inflationary wage increases because that would mean that everyone, especially people on lower incomes, would suffer.”