New figures from the Central Statistics Office show that inflation rose to 2% in the year to August, as consumers paid higher prices for petrol and diesel, and clothing and footwear.
Inflation had stood at 1.6% in July.
The CSO said the consumer price index rose by 0.6% in August, its first monthly increase in five months. The increase compared to a rise of 0.2% the same time last year.
Prices of clothing and footwear increased by 6.6% last month as the summer sales came to an end.
The cost of transport rose by 1.6% on the back of higher petrol and diesel prices. There was also an increase in third level education costs, tobacco prices and higher health insurance premiums last month.
The cost of housing, water, electricity, gas and other fuels fell by 0.5% due to lower mortgage interest repayments. However, this was partially offset by an increase in the cost of home heating oil.
Today's CSO figures also show that the annual rate of inflation for services was 2.3% in the year to August, while goods increased by 1.6%.
The EU measure of prices - which excludes mortgage repayments - rose by 0.8% in the month, compared to an increase of 0.2% in August of last year. Prices on average, as measured by the harmonised index of consumer prices, were 2,6% higher in August 2012 compared with August 2011.