Berlin  - German pay is rising more quickly than at any time since 1996, according to data released Tuesday by the national statistics office in the city of Wiesbaden.

Salaries rose 3.3 per cent in January this year, compared with January 2007, the office said.

It noted that consumer prices had risen 2.8 per cent over the same period, indicating that most workers were better off.

Salaries in the public sector rose 4.4 per cent, well above the average. In industry, the rise was around 3.6 per cent.

Following years of wage restraint, German unions have shown increased militancy in recent months, securing increases well above the inflation rate.

Last week, the president of the German central bank, the Bundesbank, expressed concern about the effects of rising wages on inflation.

The latest wage rounds had increased the risk "that the rate of inflation could remain stuck at the current high level," Axel Weber said. He attributed current inflation rates around 3 per cent to food and energy price rises in particular.

In February, steelworkers in the key north-western states gained a hike of 5.2 per cent over 13 months. Train drivers have also secured a considerable rise, following a damaging year-long series of strikes.

Postal workers are currently engaged in last-minute talks to avert a national strike.

Public sector workers in Berlin are set for an all-out strike from later this week in support of a 2.9-per-cent demand. (dpa)