British Finance Minister Alistair Darling called on for pay awards to be kept in check to ensure they did not add to inflationary pressure in the British 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 two per cent."
"The last thing on earth you want is to allow inflation to take hold again because rising prices would erode peoples' living standards and nobody wants that," he said.
Data last week showed inflation reached its highest level in Britain in 11 years. Inflation rose to 3.3 per cent in May, the highest since the Labour government came to power in 1997.
The Bank of England has said inflation may rise above four per cent this year, but policymakers have to balance that with a risk that sharply slowing economic growth will push it below the two per cent target in two years' time.
Prime Minister Gordon Brown said last week that ministers would forego their annual pay rise to set an example to others.
"People have been getting pay raises in the public sector in the past 10 years," Darling said.