The annual rate of inflation fell to 4.7% in December from 5% in November, the latest figures from the Central Statistics Office show.
Prices for clothing and footwear fell last month, while there were increases in the prices of alcohol and tobacco, food, housing, water, electricity, gas and other fuels.
The CSO says that consumer prices last month rose by 0.1% compared to an increase of 0.3% in December 2006. The annual rate of inflation for services was 6.5% in December, while goods increased by 2.7% in the year.
The figures reveal that the cost of clothing and footwear fell as the annual sales kicked in last month. Alcohol and tobacco prices rose after excise duties were increased in the Budget in December, while food prices rose on the back of increases in the cost of a wide range of products including bread and biscuits.
Higher average mortgage interest repayments and higher local authority rents were also evident last month.
