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date: 19 May 2009

embargo: For immediate release

Widespread pay freezes are the wrong reaction to deflation, says TUC

Commenting on the latest inflation figures from the Office for National Statistics released today (Tuesday) which showed that the Retail Prices Index fell from minus 0.4 per cent to minus 1.2 per cent in April, TUC General Secretary Brendan Barber said:

'Entrenched deflation would be a real threat to economic recovery. There are no green shoots here.

'Calls for widespread pay freezes are exactly the wrong reaction today. Of course employees and their unions understand the reality of companies hit hard by recession, but others can still afford reasonable increases that can then feed through into helping the economy recover.'

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Press release (200 words) issued 19 May 2009