The annual rate of inflation for January has climbed to 5.2 per cent - the highest level in six years - on the back of higher fuel costs and increased average mortgage interest repayments.
The CSO's Consumer Price Index rose 0.3 per cent from 4.9 per cent in December despite a drop of 14.3 per cent in clothing and footwear due to the January sales. The price of clothing and footwear fell by 1.5 per cent in 2006.
The price of alcoholic beverages and tobacco also increased by 5.5 per cent
The CSO said the most notable changes in the year were increases in the cost of housing, water, electricity, gas and other fuels - which rose by 23.2 per cent due in the main to higher mortgage repayments and an increase in electricity prices.
This was more than offset by the decrease in clothing and footwear in the January sales, the CSO said.
The price of alcoholic beverages and tobacco also increased by 5.5 per cent, while the cost of education and restaurants/hotels rose by 4.9 per cent and 4.4 per cent respectively.
Furnishings and household equipment decreased by 2.6 per cent in January and 0.9 per cent in 2006.
The CSO noted the annual rate of inflation for services was 9.1 per cent in January, while goods increased by 0.6 per cent in the year.
Consumer Prices in January, as measured by the CPI, decreased by 0.1 per cent in the month compared to a decrease of 0.3 per cent in January of 2006.
The EU Harmonised Index of Consumer Prices (HICP) decreased by 0.6 per cent in the month, compared to a decrease of 0.5 per cent in January 2006, the CSO said.
The annual rate of inflation, as measured by the HICP, decreased from 3 per cent in December to 2.9 per cent in January.