The soaring cost of oil has had a significant impact on the cost of living in Ireland, the latest inflation figures reveal.
Fuel costs, including electricity and gas, have risen by 12.7% in July compared to the same month last year.
Overall the rate of annual inflation rose to 2.4% from 2.1% in June.
The small business lobby group, ISME, said that the likelihood was that inflation would continue to increase in the coming months, with resulting negative impact on the Irish economy.
It comes as oil prices reached new record levels, rising to $66 a barrel this afternoon.
It rose to $65.23 on Asian markets early today, the highest price since the New York Mercantile Exchange began trading crude oil futures in 1983.
Brent crude prices in London also reached record levels, breaking the $64 mark for the first time yesterday before falling back to $63.99.
The record prices are being blamed on stoppages at US refineries and security fears regarding Saudi Arabia and Iran, the two largest oil producers in the Organisation of Petroleum Exporting Countries, OPEC.
