Figures from the Central Statistics Office show that the pace of consumer price rises slowed last month.
The annual rate of inflation was 2.7%, down from 3.2% in April. The CSO said consumer prices in May were just 0.1% higher compared with April.
Clothing and footwear prices rose by 0.6% last month, while there was also an increase in the price of hotel and other accommodation. Higher prices for spirits in off-licences and supermarkets also pushed alcohol prices up.
The EU harmonised measure of inflation - which excludes mortgage repayments - was unchanged last month, giving an annual increase of 1.2%.
A breakdown of the May figures showed that mortgage interest costs rose by 0.6%, while rents crept up by 0.1%. Mortgage interest costs have climbed by more than 20% in the last 12 months, though rents are down 1%.
Health costs fell 0.1% in May, mainly due to lower doctors' fees and lower prices for some medical products. Education costs were also down 0.1%. Transport costs rose by 0.1% in the month, with petrol up 1.7%, but diesel down 0.4% and air fares dropping by 8.9%.
Economists point to weak domestic pressures
Ulster Bank economist Simon Barry said slower inflation was evident across a number of categories including housing-related costs, transport and food.
Bloxham's Alan McQuaid said the recent decision to cut the VAT rate on various consumer-related items should help to keep inflation down over the remainder of the year, but a lot would depend on whether commodity prices moved higher again in the second half of the year.
Davy economist Conall Mac Coille said that underlying inflation - excluding mortgages and energy - remained weak, reflecting weak domestic demand in the economy.
Juliet Tennent of Goodbody said price pressures outside the influence of the domestic economy were continuing to push prices upwards and eat into the discretionary spending ability of the Irish consumer. 'However, weak labour market conditions will temper wage inflation and ultimately limit price increases,' she added.
