The annual inflation rate moved back up to 5% last month, having dipped to 4.9% in June, according to figures from the Central Statistics Office.
The increase was mainly due to higher mortgage repayments following June's interest rate rise from the European Central Bank.
Increases in air fares and petrol prices also contributed to the rise.
An EU measure of inflation, which excludes mortgage repayments, showed a drop from 2.8% in June to 2.7%.
A breakdown of the CSO figures showed that annual inflation in the service sector of the economy was 8.7% in July, while the rate for goods was just 0.6%.
The monthly rise in prices was 0.3%, with the housing category showing a 2.6% increase and transport up 1.1%. But clothing and footwear prices fell 8.4% due to summer sales.
The Small Firms Association has said the rate is disappointing.
Alan McQuaid, Chief Economist with Bloxham Stockbrokers, says that while the focus has been on the housing market and the possible negative effects of construction sector weakness, the most important issue is the fact that inflation has been in and around 5% for the whole of the year.
He said the Government cannot afford to let inflation remain this high, especially with the euro trading at record highs against the dollar and the yen, which is making life tougher on exporters.
He also predicts that growth forecasts next year may be higher than people are assuming, but inflation will also be higher than people are expecting.
