New figures from the Central Statistics Office show rising inflation has resulted in increases across a range of products, including bread rising by 5.3% while crisps increased by 7%.
Overall food and non-alcoholic drinks are up 1.6% on an annual basis, with increases too in energy and fuel costs.
The CSO says the annual rate of inflation rose by 5.5% in December, which is an increase on 5.3% recorded in November, and is the highest annual rate since April 2001.
On an annual basis, today's figures show that diesel prices rose by 36%, while petrol prices increased by 32% and airfares were up 66%.
Prices for electricity were up 22.4% while gas was up 28%. The cost of home heating oil was up 53%.
Private sector rents were up 8.4%, today's figures show.
The CSO said that food prices have also started to go up with price increases recorded across a range of products, including bread rising by 5.3% while crisps increased by 7%. Overall food and non-alcoholic drinks are up 1.6% on an annual basis.
Inflation really began to take off in the second half of last year, with higher energy prices.
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Prices were still falling on an annual basis until February. That contributed to the fact that overall, the average annual inflation for 2021 was 2.4%.
This compares to a fall of 0.3% in 2020 and an increase of 0.9% in 2019.
Energy products rose on average by 12.3% last year compared to a fall of 5% in 2020. The price of goods went up an average 1.5% in 2021 compared to a fall of 2.2% in 2020.
The CSO has also calculated inflation for the years between 2017 and 2021 with the overall increase over this period of 3.5%.
Housing, Water, Electricity, Gas and other fuels showed the largest increase over this period, going up by 14%. But there was 12.4% decrease in the price of Communications and a 4.2% decrease in Food and Non-Alcoholic beverages.
Euro zone inflation also rose last month, increasing to 5% from 4.9% in November, a record high for the currency bloc and well ahead of analysts' expectation for 4.7%.
Meanwhile, UK inflation rose faster than expected to a near 30-year high in December, intensifying a squeeze on living standards and putting pressure on the Bank of England to raise interest rates again.
UK consumer price inflation increased to 5.4% from November's 5.1%, the highest since March 1992, the Office for National Statistics said.