Finance Minister Brian Cowen has said the worst thing to do following recent increases in the inflation rate would be to push domestic wages higher.
He was responding to comments from ICTU general secretary David Begg, who told RTE earlier that if there was no sign of inflation moderating by July, there would be pressure to renegotiate pay agreements.
Minister Cowen told the News at One the Government had expected a 'temporary spike' in inflation in the early part of this year and the rate of price increases should moderate later in the year.
The Minister said he saw no need to renegotiate the terms of the latest national pay deal Towards 2016.