The Tánaiste says further measures on reducing the cost of fuel and energy for consumers will be discussed at a European level.
It comes as an ESRI study shows inflation could peak at eight and a half per cent this year.
There are demands for the government to take more action to help those struggling with household bills.
Tánaiste Leo Varadkar says the government has introduced measures to help and the issue is likely to feature at an EU leaders summit this week:
"I think any further actions like reduction in VAT would have to be something that we do on European level. We've already reduced Excise considerably. And I think that has helped to mitigate the increase in the price of petrol and the price of diesel. But again, as I said before, you know, we've already invested a billion euros in helping people to manage the rising cost of electricity, gas, petrol and diesel. But these things are factors that are beyond the control of governments. They're driven by international factors."
