Higher motor, health and house insurance premiums helped drive consumer price inflation to 0.5 per cent last month, its highest level in three years.

The latest figures from the Central Statistics Office (CSO) show the cost of motor insurance has risen by 38.3 per cent in just 12 months.

The data also show the cost of house and health insurance rose by 11.2 per cent and 7.6 per cent respectively.

Insurance is included in the CSO’s sub-index for miscellaneous goods and services, where costs were 6.6 per cent higher on an annual basis.

The other notable changes were rises in the cost of education (+3.8 per cent), restaurants and hotels (+2.8 per cent) and health (+1.9 per cent).

Conversely, there were falls in the cost of household furnishings and equipment (-3.6 per cent), transport (-3 per cent) and communications (-1.5 per cent).

Consumer prices in July, as measured by the Consumer Price Index, fell by 0.2 per cent on a monthly basis.

There have been suggestions the impact of Brexit and the subsequent weakness in sterling may affect Irish consumer prices with a stronger euro driving prices on British imports lower.

However, it may take some time before businesses change their pricing structures as a result of the current volatility.

Isme, the Irish Small and Medium Enterprises Association, called on the Government to prioritise business cost competitiveness in the wake of the Brexit vote, warning pressure on export prices to the UK required a co-ordinated response from industry and government.

“We continue to be a high-cost economy which is rapidly losing any competitive gains made since the recession. The UK market has become much more challenging for Irish SME exporters, due to the fall in sterling,” Isme boss Mark Fielding said.

“The one answer is increased productivity and cost control. The concern from SME owners is that the Government has abdicated its responsibility in this area,” he added.