The General Secretary of ICTU, David Begg, has said that he expects the overall average inflation figure for this year to be close to 3.25%, considerably larger than the Department of Finance's budget time prediction of 2.7%.
Speaking on RTÉ’s 6:1 News, Mr Begg said that the rise in inflation coupled with economic growth would have an influence on pay determination.
Earlier, the Minister for Finance, Brian Cowen, blamed high energy prices for today's increase in the annual rate of inflation to 3.5%.
However, he said that he believed inflation would moderate during the course of the full year more in line with the Government's predicted 2.7%.
On the national pay talks, which resume after Easter, Mr Cowen called for a sense of realism amongst the social partners.
The minister said the challenge was to manage wage increases in line with increased productivity amongst Irish workers in order to retain the economy's international competiveness.
The latest figures from the Central Statistics Office show the annual rate of inflation has risen to 3.5% in March from 3.3% in February.
This is the highest inflation has been in Ireland for almost three years and is higher than expected by most analysts.
Higher mortgage repayments, rents, and food costs were responsible for much of the increase.
The CSO says consumer prices increased by 0.4% in March. This compares to a rise of 0.3% the same time last year.
The annual rate of inflation for goods was 2.1% in March, while the rate for services was 4.7%.
