The annual rate of consumer price inflation eased back up to 4.8 per cent, according to the Consumer Price Index published today by the Central Statistics Office (CSO).
The monthly change was a rise of 1.2 per cent and the increase in the annual rate of inflation was 0.5 per cent. Prices accelerated last month as the impact of the discounts in the January sales wore off.
The increase means the cost of food has increased by 8.5 per cent over the last year, while gas and other fuels rose by 12 per cent.
According to the CSO, the increase in food costs was due to price increases in a wide range of products including milk, meat, bread and cereals.
Heavy discounting by retailers means that over the year clothing and footwear prices have fallen 3.3 per cent.
Increases in fuel costs and motor taxation saw transport costs rise 4.7 per cent while housing, water and also increased due to increases in average mortgage interest repayments and private rents.
The annual rate of inflation for services was 5.6 per cent in February, while goods increased by 3.9 per cent in the year.
The CPI excluding mortgage interest costs increased by 1.3 per cent in the month and rose by 3.4 per cent in the year.
Independent business organisation ISME said the increase was the highest in over a year and was a major shock to small businesses.
Mark Fielding ISME Chief Executive said threat f inflation was still a threat to Irish businesses.
"The Government need to rigorously pursue a policy of low inflation and ensure that there is no reduction in much needed investment for essential infrastructure.
"It is absolutely imperative that current expenditure is not allowed to 'run out of control' with the consequential pressure on inflation, particularly with partnership talks about to commence.
SIPTU General Secretary Joe O'Flynn said the increase in inflation would hit working families hardest.
"Health costs have risen by 5.7 per cent on an annualised basis, almost double the comparable figure of 2.9 per cent for last year, and food has risen by 8.5 per cent, compared with 1.1 per cent in 2007. These increases impact hardest on people with low to middle incomes, especially working families with children," he said.
Fine Gael's finance spokesman Richard Bruton berated Minister Brian Cowen for what he called his sloppy handling of the economy.
"Hopes that inflation was on its way down have been dashed by the latest figures from the Central Statistics Office.
"Brian Cowen's sloppy economic management has exposed Ireland to the risk of stagflation, a lethal combination of a stagnant economy and rising inflation," he said.