The annual rate of inflation jumped again in December to 4.9%, according to the Central Statistics Office. This was the highest rate since March 2003 and compared with 4.4% in November.
Prices rose by 0.3% compared with November, mainly because of higher average mortgage repayments and price increases for cigarettes and other tobacco products following excise duty increases in the Budget.
The CSO figures show that the annual rate of inflation in the services sector is now 8%, compared with 1.2% for goods. Under the EU's Harmonised Index of Consumer Prices measure, annual inflation was 3%, compared with 2.4% in November.
Meanwhile, the average inflation rate for 2006 was 4%, compared with 2.5% in 2005 and the highest since 2002. Inflation began the year at 3%.
A breakdown for the year showed that mortgage interest jumped by 31.5% because of higher interest rates, while energy products were up 8.2%. The housing, water, electricity, gas and other fuels category recorded a 33% surge in prices last year.
The CSO said that items previously covered by the Groceries Order, which was removed in March, rose by 0.1% in price last year. Items which had never been covered saw prices increase by 2.4%.
