Figures from the Central Statistics Office show that the annual rate of inflation fell slightly last month to 2.2%, compared with 2.3% in January. This was the third fall in a row in the annual rate.
Prices rose by 0.8% in the month, but this was similar to the increase as recorded in February. The annual rate of inflation for goods was 0.2%, but the rate for services was 4.1%.
One of the main factors in the monthly rise was an 11% increase in the price of clothing and footwear as the winter sales came to an end. Higher taxi and air fares, as well as a rise in petrol prices, led to a 0.6% increase in transport costs.
There were higher mortgage interest repayments, while private rents also climbed. Increases in doctors' and dentists' fees also pushed health costs up 0.6%.
The figures also show that local authority charges for water, refuse and miscellaneous services have gone up by an average of 36.4% over the past twelve months. This is the largest price increase for any category of goods or services included in the Consumer Price Index.
The annual rate of inflation as measured by the EU's harmonised index fell to 2% from 2.1%.
Commenting on today's inflation figures, IIB Bank's Austin Hughes says that there are clear signs that global inflation is ticking higher and this influence could be accelerated by rising energy costs.
He said that as 2005 progresses, he expects to see Irish inflation move onto a modestly rising trend.
