Inflation rose to 5 per cent in July from 4.9 per cent in June, according to the latest figures from the Central Statistics Office (CSO).
The slight rise in the annual rate was fuelled by mortgage interest rate hikes and increases in the cost of air fares and petrol prices.
The most notable changes were seen in housing, water, electricity, gas and other fuels; that grouping rose 21.8 per cent. Alcohol and tobacco increased 5.6 per cent, while education rose by 4.5 per cent, closely followed by restaurants and hotels at 4.1 per cent.
There were decreases in clothing and footwear, which slipped 1.4 per cent.
The annual rate of inflation for services was 8.7 per cent, while goods rose by 0.6 per cent in the year.
However, the EU Harmonised Index of Consumer Prices fell from 2.8 per cent in June to 2.7 per cent in July. It excludes mortgage interest and some consumer items.
Fine Gael finance spokesman Richard Bruton blamed Government regulated sectors for the growing gap between Irish and euro zone inflation.
"Irish inflation is now well ahead of price increases in the rest of the euro zone, even though these countries are facing the same pressures of interest rate increases and rising fuel prices," he said.
"Government-regulated sectors in Ireland are the main reason for this gulf. Inflation in Government-regulated sectors (housing, health, communications) is running at more than twice the rate of the same sectors in the euro zone. This is in sharp contrast to the goods sector (clothing, furniture), where the Government has little or no influence."
Labour's spokeswoman on consumer affairs, Kathleen Lynch, said that price increases could no longer be dismissed as a "blip".
"The annual rate of inflation has now been at or around 5% since last December and with another increase in interest rates likely from the European Central Bank, oil again at over $70 a barrel and warnings from the food and drink industry of significant increases in the price of basic food items, there appears to be no relief in sight for consumers," she said.
" I would now urge the social partners to seek an urgent meeting to consider what steps [the Government] intends to take to deal with a level of inflation that was clearly never envisaged when the Towards 2016 agreement was concluded. "
