Chancellor Alistair Darling also said the above-inflation pay deal was due to "particular problems" confined to the tanker dispute. "Settlements overall over the last 12 months are around 3.5% which is consistent with our inflation target," Mr Darling told the BBC. His comments come a day after the latest UK inflation data showed the annual rate rose to 3.3% in May, up from 3% in April and well above the target of 2%. Bank of England governor Mervyn King has warned that rising food and energy prices could push UK consumer inflation above 4% this year.
Just shows that public service workers have been forced to settle for below inflation targets and no account has been taken of the particular problems that we face.