Figures from the Central Statistics Office show that the annual inflation rate rose for the second month in a row to 1.7%, as higher oil prices fed through into transport costs.
The rate compared with 1.4% in April. Prices rose by 0.2% in the month.
The main factors in the monthly rise were transport costs, which increased 0.5% because of higher petrol and diesel prices, and restaurant and hotel prices, which also rose 0.5%.
Petrol prices were up 3% in the month, while diesel rose by 2.6%, but air fares fell by 10%.
Food prices were also up 0.5% while there were also increases in mortgage repayments and home heating oil prices.
A breakdown shows that the cost of utilities and local charges, as well as the cost of energy products, have risen by almost 7% each over the past 12 months - four times the rate of inflation for the rest of the economy.
Water, waste, and other local charges stand out. They are up 25.3% on average - the highest rate of inflation of any category of goods or services listed in the consumer price index.
The EU harmonised index of consumer prices increased by 0.2% in the month to give an annual rate of 2.1%, compared with 1.7% in April.
IIB economist Austin Hughes said the rise was in line with an acceleration in inflation worldwide and should not be regarded as particularly threatening.
He pointed out that the annual rate of service inflation, which is more influenced by domestic developments, dropped to 2.7% from 2.8%.
But Hughes said the timing of the rise was 'unfortunate' in that it means national wage talks are now taking place against a backdrop of modestly rising inflation and fears of a sharper acceleration in consumer prices in the months ahead.
'Against this backdrop, it is likely that the longer wage negotiations take, the higher the eventual settlement rate', he said.
