Figures released this morning show that the annual inflation rate fell for the sixth month in a row in February to 1.7%.
The Central Statistics Office said consumer prices rose by 0.8% compared with January, the biggest monthly rise for almost a year, but as there was a 1% rise in February last year, the annual rate showed a decline.
The annual inflation rate has dropped sharply over the past year, with the rate standing at 5.1% this time last year.
A breakdown showed that prices of clothing and footwear jumped by 12% in February following the end of the winter sales. An increase in Eircom's line rental charges also pushed up communications costs.
Health prices also rose with an increase in doctors' and dentists' fees, but education costs fell.
The annual rate of inflation for goods stood at 0.3% in February, while service inflation was 3.1%.
IBEC economist David Croughan welcomed the fall, but said it was even more important now to guard against increases in the service sectors, where there was some evidence that inflation was beginning to creep up again. He described the 11.7% rate for inflation in utilities and charges as 'totally unacceptable'.
ISME also welcomed the figures, but pointed out that the average rate of inflation in the EU had fallen from 1.9% in January to 1.6% and was falling quicker than the Irish rate.
