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The rate that the prices of goods and services are rising has picked up.

Inflation was 1.4pc last month, up from 1pc the previous month, according to Central Statistics Office (CSO) figures.

Consumer prices went up by 0.9pc in the month between November and December last year.

Higher prices for motor, home and health insurance, along with more costly airfares, diesel and petrol were some of the main drivers of the monthly rise in the consumer price index, which measures inflation.

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The CSO figures show there was also a rise in prices in restaurants and hotels.

This reflects higher prices for food and alcoholic drinks consumed in licensed premises, restaurants and cafes, the statistics agency said.

Over the last year household budgets were hit by increases in health and motor insurance premiums.

Food prices continue to rise. (Julien Behal/PA)

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