The Forfás report confirms rising prices were affecting the Irish economy, combined with profiteering, according to the ICTU.
"It tends to confirm the widespread perception that prices were rising fairly rapidly and that there was a high degree of profiteering associated with the euro changeover," said ICTU general secretary Mr David Begg.
In consultative meetings the unions were conducting to decide on whether or not to enter negotiations on a new national wage agreement, the perception was that prices were rising beyond the levels reported by the Central Statistics Office, he added. "There is a lack of confidence in the ability of institutions such as the CSO to give a true picture."
Forfás, in conjunction with other reports emanating from the retail sector, confirmed that concerns about rising consumer prices were justified, he said.
"We're very satisfied that the high inflation in the cost of goods and services is caused by profiteering. And we're genuinely worried about the situation, with Ireland the second most expensive country in the eurozone and in wages terms 14th in the league of EU countries," Mr Begg said.
IBEC director Mr Brian Geoghegan, who represents employers, said the report justified recent warnings from the employers' body concerning pay expectations as the economy hits rougher waters. "IBEC acknowledges that a broad range of policy actions is needed to curb present inflationary pressure, but pay expectations must now be tempered to reflect the economic slowdown."
Crucially, the report rejected the notion there was widespread profiteering "on the back of the euro changeover", Mr Geoghegan said.