Figures from the Central Statistics Offices show that the consumer price index rose 0.6% in June from the previous month to stand 2.3% higher on the year, with higher fuel prices nudging up transport costs.
The index rose 0.2% month-on-month in May for a year-on-year increase of 1.7%.
Economists had expected a monthly rise of 0.3% in June to give an annual rate of 2%.
The most notable changes in the month were increases in transport (+1.5%) and housing, water, electricity, gas and other fuels (+0.8%) and food and non-alcoholic beverages (0.5%). There were decreases in miscellaneous goods and services (-0.4%) and clothing and footwear (-0.4%).
The biggest increases on the year were education (+6%), health (+5.8%), alcohol and tobacco (+3.6%) and housing, water, electricity, gas and other fuels (+2.7%).
The EU Harmonised Index of Consumer Prices (HICP) increased by 0.5% in the month. This compares to an increase of 0.1% in June of last year and as a result the annual rate of inflation as measured by HICP rose to 2.5% up from 2.1% in May.
Davy Stockbrokers said the rise was bigger than it had expected, and has increased its average forecast for 2004 from 2% to 2.2%.
It said part of the rise was due to timing, as the May figure did not take full account of the increase in petrol prices in that month. Davy also said that the dampening effect of a stronger euro had disappeared.
But the broker said it was encouraging that the pace of service sector inflation had slowed.
