The annual rate of price inflation rose to 3.3% last month as a result of the ending of the January sales as well as larger than expected increases elsewhere in the economy.
It is the highest inflation rate since the middle of 2003 and comes at a time when the social partners are struggling to agree a national pay deal.
Other figures also published by the Central Statistics Office today show retail sales booming, with a rise of 9% being recorded in the 12 months to the end of January.
According to the CSO the rise in inflation is mainly because of fuel, electricity, health and education costs.
It says transport costs increased with higher prices for petrol and diesel and higher air fares. Health costs rose due to higher doctors' fees.
The annual rate of inflation for goods was 2% in February, with the rate for services increasing by 4.4%.
Over the year to February services such as health saw price increases of 4.7%, transport up 5.7% and education rose by 4.6%.
Amongst goods the biggest monthly rise was seen in the clothing and footwear sector, with prices rising by 12.6%. This coincides with the end of the New Year sales.
Other goods such as furniture and household equipment saw a slower rise in prices in February with a rise of 2.3%.
Over the year communications prices fell by 1.3% reflecting competition in the telecoms sector, and lower prices in the household equipment and maintenance sector saw prices in that sector fall by 1.5%.
