The annual rate of inflation rose to 3.8 per cent in April as the effects of higher oil prices spread across the economy.
The latest Consumer Price Index (CPI) found that the cost of a basket of goods and services bought by the average consumer rose by 0.8 per cent in April.
The most significant monthly price changes were increases in housing, water, electricity, gas and other fuels (+2.7 per cent). Transport rose by 1.4 per cent and restaurants and hotels by 0.7 per cent as businesses passed on higher energy costs to consumers.
In the past 12 months, fuel and electricity prices have risen by 13.2 per cent, while transport has risen by 5.6 per cent and health by 4.6 per cent.
Over the same period, the prices of clothes and shoes have fallen by 1.7 per cent and household furnishings by 1.4 per cent.
The annual rate of inflation, as measured by the EU-wide HICP, decreased from 2.8 per cent in March to 2.7 per cent in April.
The divergence between the HICP and the CPI in April is mainly due to the exclusion of mortgage interest repayments from the coverage of the HICP.
Business group Isme expressed alarm at the latest inflation increase and stressed the necessity of reducing inflation to the European average.
The body noted that inflation has increased by 1.3 percentage points or almost one-third since the beginning of the year.
Mark Fielding, chief executive of Isme, questioned the role of the anti-inflation committee that was set up by the Tánaiste in 2003 to address inflation.
"It is quite obvious that this committee has either never met or has met and failed to adequately address the inflation issue. The explanation for this becomes apparent when it is considered that the root cause of inflation remains costs under the influence of Government, in particular education, health, energy and local charges, " he said.