New figures show that consumer prices rose by 0.4% in June compared to the same time last year on the back of higher rents, more expensive gas and electricity and petrol and diesel prices. 

The Central Statistics Office said that on a monthly basis, consumer prices were up 0.1%.

On an annual basis, housing, water, electricity, gas and other fuels rose by 5.4% in June on the back of higher rents and an increase in the price of home heating oil and electricity.

Prices in restaurants and hotels were up 2.1% on the back of higher prices for alcoholic drinks and food, while transport costs were up 1.5% as a result of more expensive diesel and petrol. This was partially offset by a decrease in air fares. 

June also saw falls in the price of miscellaneous goods and services due to lower health and motor insurance premiums and lower prices for appliances, and personal care products.

Food and non-alcoholic beverages were down 2.1% due to lower prices across a range of products such as meat, vegetables, jam, honey, chocolate and confectionery and bread and cereals.

The prices of furnishings and household equipment also fell by 4.1% due cheaper non-durable household goods, furniture and furnishings, glassware, tableware and household utensils.

Commenting on today's figures, Merrion economist Alan McQuaid said that despite strong economic growth, there is little sign of sustained pressure on the prices front.

He said this appears to be the same story across the euro zone, suggesting that the European Central Bank will be in no hurry to increase interest rates.

"Although the annual inflation rate should pick up in the coming months, inflationary pressures in Ireland as measured by the headline consumer price index are in general likely to stay well contained for the immediate future," the economist added.