A union which represents workers in the retail trade has expressed concern that the pay element of the new social partnership agreement may not be enough to offset rising inflation.
Latest figures from the Central Statistics Office show that the annual rate of inflation rose to 4.5% last month from 4.2% in July.
Speaking on RTÉ Radio's News At One, the General Secretary of Mandate, John Douglas, said the fact that the inflation rate is now at its highest level since March 2003 was worrying.
There were increases last month in petrol, diesel and home heating oil prices, along with the cost of average mortgage interest repayments and rents.
After the ending of the traditional summer sales, prices of clothing, footwear and furnishings were also more expensive last month.
The price of eating out and accommodation also went up.
The CSO said that consumer prices increased by 0.8% in August, compared to an increase of 0.5% the same time last year.
During the month the price of clothing and footwear jumped by 7.3%, while household equipment and furniture costs rose by 1.3%.
Transport costs were up 1.2% with higher prices being charged for petrol, diesel and car rental.
The cost of housing, water, electricity, gas and other fuels rose by 0.8% as average mortgage interest repayments, private rents and home heating oil costs increased.
Prices in restaurants and hotels were also up 0.6% in August.
The CSO says that the annual rate of inflation for goods last month was 1.7%, while the rate for services was 7%.
