Prices went up by 2.6% last year with the biggest increases seen in education, housing and energy costs, according to the Central Statistics Office.
Prices fell slightly in December, but only by an average of 0.3%.
In 2011, the cost of Education went up 8.9%, the 'Housing, Water, Electricity, Gas & Other Fuels' category rose by 8.4%, and Health saw an increase of 2.6%.
In the same year there were decreases in the 'Furnishings, Household Equipment & Routine Household Maintenance' category, down 1.9%, 'Restaurants & Hotels decreased by 0.9% while 'Recreation & Culture' slipped 0.6%.