The cost of living has been hit by the first annual increase since the start of 2009, official figures revealed today.
Mortgage interest hikes, increasing bills for education and rising telecomms charges all led to a 0.2pc rise in inflation.
Up until August, year-on-year consumer prices had fallen steadily over the last 19 months.
The Central Statistics Office basket of goods test showed fashion stores increasing prices for clothes and footwear as the summer sales ended last month and transport charges also edged up slightly as airfares and car rental costs went up.
Ibec, Irish business lobby group, warned prices in some sectors were still too high and needed to fall back in line with our competitors.
Economist Reetta Suonpera said: "Prices are now rising again, ......"
Isme, the Irish Small and Medium Enterprises Association, said the future of thousands of businesses lay in the hands of Government and called for state-managed rates to be cut.
Chief executive Mark Fielding said:
"The private sector has done its bit by cutting costs to the bone, just to remain in business, but these companies continue to be hammered by increases in state imposed costs."
Avine McNally, director of the Small Firms Association, said: "When costs are passed on to the rest of the economy, competitiveness and jobs are lost and businesses close."
Dan McLaughlin, of Bank of Ireland's economic research division, said the annual rise in inflation was driven by higher mortgage interest costs, as banks sought to pass on some of their higher costs of funding.
So prices are increasing because the banks need to make more money...while billions of our money is been pumped in to save them,they see their chance to squeeze us for a bit more.
What are your own thoughts?
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