New figures show that prices, as measured by an index used across the European Union, were up by 2.7pc in the year to December in this country.
This figure is for what is called the “flash estimate” of the EU Harmonised Index of Consumer Prices (HICP) for Ireland.
The indes for Ireland increased by 0.6pc since November 2025, according to the Central Statistics Office (CSO).
The 2.7pc figure compares with HICP inflation of 3.1pc in Ireland in the 12 months to last November and an annual increase of 2.1pc in the for the Eurozone in the same period.
Energy prices in this country were up by 2.4pc in Ireland in the year to December, the CSO said.
A number of energy companies, including Energia, Board Gáis and SSE Airtricity, have recently hiked their prices.
The rises are set to impact around one million households, and come after the Government decided not to pay energy credits for the first time in three years.
Food prices are estimated to have decreased by 0.1pc in the last month and increased by 4pc in the last 12 months.
Grocery bills are continuing to rise, with key items such as milk, meat and butter showing increases well above average.
The rise of 2.7pc in the harmonised index of prices compares with a reading of 3.2pc in the consumer price index in the year to last November.
That is the highest rate of inflation since December 2023.
The EU Harmonised Index of Consumer Prices is lower as that index excludes mortgage interest repayments, motor tax, home insurance (building and contents), and property tax.
Recent Credit Union Consumer Sentiment Index shows the pressure on household budgets from the cost-of-living crisis in which food, energy and a range of other goods and services continue to rise in price.
Stretched families are having to budget, dip into their savings to fund the festive celebrations and some are even borrowing.
The survey found that 52pc of Irish consumers said they have less money to spend on Christmas than they had a year ago. Only 9pc said they have more spending power this year.
Prices are likely to keep rising as petrol and diesel prices have gone up by 5c a litre after changes to the renewable inputs into the fuels, tolls have increased and motor insurance continues to rise.