Opposition parties and business groups have criticised the Government for failing to tackle inflation after the latest Consumer Price Index revealed it has risen to 4.8 per cent in October.
Labour said the new figures made it essential that the Minister for Finance takes due account of the level of inflation when formulating his budget.
Party finance spokeswoman Joan Burton said: "These trends pose particular problems for people on low incomes, for whom food and fuel costs are a more significant portion of the household budget than is true of the wider population."
She said inflation is now running at around twice the level that workers were told could be expected when the agreed to the pay terms of Towards 2016, which provided for an increase of 10 per cent over 27 months.
"The current level of inflation means that workers will see no real increase in real income levels and may actually suffer some deteriorating."
Fine Gael finance spokesman Richard Bruton said the rising rate of inflation revealed huge increases in the price of basic necessities. He said this will put some families under severe pressure, particularly for families who have recently taken out mortgages.
"Our inflation rate is now growing at a rate 38 per cent faster than in the rest of the euro zone. This bodes ill for Irish competitiveness, which will be the key to weathering the more difficult economic climate ahead," he added.
"Once again it is clear that our inflationary problems are being generated within our own economy and most of it within sectors managed or regulated by the Fianna Fáil Government," Mr Bruton said.
ISME, the independent business organisation, said the rise in inflation "once again highlighting the impotence of current Government inflation policies".
Irish business group Ibec called on the Government and the social partners to work harder than ever to help stem Ireland's falling competitiveness.