The annual rate of inflation rose to 2.4 per cent in May in the highest level recorded this year, according to figures from the Central Statistics Office (CSO).
Consumer Prices in May increased by 0.4 per cent compared with the previous month, largely because of price increases in the transport sector due to higher petrol prices and increased air fares.
Prices in the health sector also rose on the back of increases in doctors' fees and the cost of prescribed drugs.
The annual rate of inflation in the service sector in May was recorded at 4 per cent compared to 0.5 per cent for goods.
The CSO said the EU Harmonised Index of Consumer Prices (HICP) increased by 0.2 per cent in the month, which was the same as the increase recorded in May 2004.
The annual rate of inflation as measured by the HICP remained unchanged at 2.2 per cent in May.