The cost of living in Ireland is now down to levels last seen in the summer of 2007 after five consecutive monthly reductions in the consumer price index.
The rate of inflation, according to the Central Statistics Office, is now running at -1.7%, the lowest level since the first quarter of 1960.
The biggest factor in this negative inflation has been the rapid decline in interest rates, which has resulted in average mortgage repayments falling by almost 26% over the year. Falling oil prices have also played a part with the cost of motor fuels down by 13%.
Rents have fallen sharply too, with an average reduction of nearly 6% last month alone, bringing the annual fall in rents to more than 13%.
Some significant price increases do show up in the consumer price index, such as a 16% rise in the cost of insurance, and an 11% increase in utility and local charges.
But with another interest rate reduction yet to be passed on to consumers, as well as a 10% cut in electricity costs and other declining costs, economists expect that inflation will fall significantly further in the months ahead.
The falling of cost of living is likely to strengthen the case for savings to be made by the Government in the emergency Budget next month.
Last month, prices fell by 0.4% compared with January. Prices in the housing, water, electricity, gas and other fuels category - which includes mortgage repayments and rents - dropped by 4.5% from January. But clothes and footwear prices rose by 7.5% and prices of furnishings and household equipment moved up 1.7%.
The harmonised EU measure of inflation, which excludes mortgage repayments, increased by 0.2% in the month, giving an annual increase of 0.1%.
