Public sector pay talks have resumed at the Workplace Relations Commission.

Talks ended without agreement in June after unions and staff associations rejected a 5% pay increase over two years saying it fell far short of inflation.

Arriving for today's talks, Kevin Callinan, the President of the Irish Congress of Trade Unions, said since the sides last engaged more than two months ago, inflation has continued to rise.

"Since we were here ten and half weeks ago the cost of living has increased by a further additional 1.5%," Mr Callinan said.

"We are here to do business, just as we were on 17 June, but the Government side is going to have to move in a credible way to close out a deal," he added.

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Mr Callinan would not comment on a report in the Irish Times today that the Government's offer will be no more than an additional 1%.

Ahead of the resumption of the pay talks, the Minister for Public Expenditure and Reform Michael McGrath called for flexibility on both sides.

"The Government is prepared to make a revised offer but it does take us to the limit of what we can do in the context of Budget 2023," Mr McGrath said.

Unions have said that the Government must 'significantly improve' its pay offer to prevent industrial action ballots next month.

The Association of Garda Sergeants and Inspectors is also attending today's pay talks.

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"We think it will be a challenging day ahead for us, we are all well aware of the economic situation so I'm sure we are going to have a long and challenging day today," said AGSI General Secretary Antoinette Cunningham.