Consumer price figures published today show that the annual rate of inflation rose last month to 4.5%, up from 4.2% in July.
The figures, from the Central Statistics Office, also show consumer prices rose by an average of 0.6% during the month.
But, in spite of a widespread belief that inflation has been fuelled by the changeover to the euro, the annual rate is in fact slightly lower than it was at this time last year.
The official price index shows that inflation in the areas of food and non-alcoholic beverages, which was running at 6% in December, just before the euro changeover, is now down to just 2.6%.
The rate of price pressure has also eased in categories such as clothing and footwear, furnishings and household equipment, communications, recreation and culture as well as miscellaneous goods and services.
However, the annual rate of 4.5% for August remains by far the highest in the euro zone where the average is less than 2%.
This could serve to undermine national competitiveness in a difficult international economic climate.
The services area continues to be the main driver of Irish inflation: prices in the areas of health, miscellaneous goods and services and education have risen by 10% in the past twelve months.
