The annual rate of inflation increased to 3.5 per cent in March, its highest in three years, as higher interest rates and fuel prices hit consumer prices.
The latest consumer price index confirms that higher interest rates announced by the ECB and rising fuel prices are beginning to taking their toll on consumers' pockets.
Although property prices are not included in the basket of goods and services used to calculate the index, mortgage interest repayments and rental accommodation costs are, and this category has seen a sharp rise in prices.
The March consumer price index shows that housing and energy costs have risen by 12.4 per cent in the past 12 months. Transport costs have risen by 5.4 per cent while health and education have risen by +4.7 and +4.6 per cent respectively since March 2005.
The annual rate of inflation for goods was 2.1 per cent in March, while the corresponding rate for services was 4.7 per cent.
Inflation as measured by the consumer price index rose from 3.3 per cent in February to 3.5 per cent in March.
The EU Harmonised Index of Consumer Prices (HICP) increased by 0.3 per cent, compared to an increase of 0.2 per cent in March 2005.
The annual rate of inflation, as measured by the HICP, increased from 2.7 per cent in February to 2.8 per cent in March.