The annual rate of inflation increased to 3 per cent in January up from 2.5 per cent in December as higher energy costs offset the January sales.
The latest consumer price index from the CSO shows that the deflationary effect of the sales season was offset by higher oil prices.
The most significant monthly price changes were decreases in clothing and footwear (-14.8 per cent) and furnishings and household equipment (-3 per cent).
However prices of housing and energy such as electricity, gas and other fuels rose by 2.2 per cent and health costs rose by 1.7 per cent.
The annual rate of inflation for goods was 1.4 per cent in January while the corresponding rate for services was 4.4 per cent.
A detailed breakdown of the price increases recorded in January shows that waste collection charges rose by 6.7 per cent, average mortgage interest repayments by 4.1 per cent and electricity by 3.1 per cent.
Following the ECB announcement in November to increase the base interest rate by 0.25 per cent, some lending institutions introduced their increases by the December 2005 pricing day (Tuesday, December 13th).
Those increases were reflected in the December 2005 Consumer Price Index. The remaining increases are now reflected in the January 2006 Consumer Price Index.
In January, increases were recorded for hospital services (+5.1 per cent), paramedical services (+3.1 per cent) and other medicines (+0.4 per cent).
The EU Harmonised Index of Consumer Prices (HICP) fell by 0.5 per cent, compared to a decrease of 1.0 per cent in January 2005. The annual rate of inflation, as measured by the HICP, increased from 1.9 per cent in December to 2.5 per cent in January.
But economists consider the jump in January to be temporary due to the base effect caused by a sharp fall in inflation last January. With the exception of sectors affected by oil consumer prices have been moderating over the past 12 months.
According to Rossa White, economist with Davy stockbrokers underlying service sector inflation has moderated in recent months and many goods not dependent on oil have fallen in price.
"However, this may soon change due to rampant consumer spending in 2006, which seems to have started already going by tax receipts and new car sales," he warned.