The annual rate of inflation rose by 2.8% in August, its biggest increase in almost ten years.
The latest figures from the Central Statistics Office show higher fuel costs was the primary driver of price increases.
Prices have gradually increased over the past ten months, the longest stretch since 2007, according to the CSO.
The CSO said that higher energy prices drove up the price of petrol and diesel at the pumps adding to an annual increase in transport costs of just over 10%.
They also fed into higher prices for electricity, gas and other fuels which rose almost 20%.
Prices in restaurants and hotels were also up – rising by 15.5% for accommodation and just over 2% for eating out.
When compared to other euro area countries, inflation in Ireland was 3% in August, exactly in line with the euro zone average.