Petrol, diesel and home-heating oil costs have jumped in the last month after the attacks on Iran by Israel and the US.
The so-called “flash” estimate for March inflation published by the Central Statistics Office (CSO) shows prices rose by 3.6pc when compared with the same month last year.
The flash estimate for the harmonised index of consumer prices (HIPC) rose by 1.8pc between February and March, the CSO said.
Inflation, as measured by the harmonised index, had been 2.5pc in February.
The harmonised index is different to the CSO official Irish inflation measure, called the consumer price index.
The harmonised index excludes mortgage interest repayments, motor tax, home insurance (building and contents), and property tax.
CSO statisticians said energy prices jumped by 11pc in March, and were up by 12.3pc in the year to March.
Food prices are estimated to have decreased by 0.3pc in the last month, but they went up by 2.3pc in the last 12 months.
CSO statistician Anthony Dawson said: “The latest flash estimate of the harmonised index of consumer prices (HICP), compiled by the CSO, indicates that prices for consumer goods and services in Ireland are estimated to have risen by 3.6pc in the past year.”
He pointed out there had been a spike in energy costs. “These increases in energy prices may have been influenced by recent events in the Middle East. These prices were collected in mid-March and before the Government measures on energy costs were introduced,” Mr Dawson said.
The index, excluding energy and unprocessed food prices, is estimated to have gone up by 2.6pc since March 2025.
Motor fuel and heating oil prices have rocketed as a result of the Middle East conflict.
Increases in the price of home-heating oil in the aftermath of the Iran war were around eight times higher in Ireland than elsewhere in the European Union.
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It currently costs around €1,670 for 1,000 litres of kerosene, up from around €1,000 before the outbreak of hostilities.
Diesel prices at the pumps increased to about €2.30 a litre, before the Government reduced the excise duty by 20c a litre. It also took 15c off a litre of petrol as its price shot up to more than €2.00 a litre in many forecourts.
Kevin Timoney, an economist with Davy, said: “In the absence of the war, we had expected annual HICP [harmonised index of consumer prices] inflation in Ireland could decline to 2.4pc.”
He said this assumed a pick-up in food and energy costs would be offset by a seasonal slowdown in core goods inflation and a gradual slowdown in services inflation. However, the impact of higher energy prices has instead seen inflation increase.
“We think energy prices likely increased by about 8pc on the month – not as significantly as the 15pc increase seen in March 2022,” Mr Timoney said, adding that there are further inflation risks ahead.
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