The rate of inflation is now running at -2.6% - the lowest level since the third quarter of 1933.
The latest figures from the Central Statistics Office show that consumer prices fell by 2.6% in the year to March, the third month of price falls in a row.
The latest fall means that prices of goods and services here are now back down to levels last seen in August 2007.
The biggest factor in this negative inflation has been the rapid decline in interest rates after several ECB rate cuts. Prices for housing, water, electricity and gas fell by 15.1% in the year, while clothes and footwear prices are down 8.6% and transport costs declined by 6.7%.
The CSO says that consumer prices in March actually showed no change in the month. However, this compares to an increase of 0.9% recorded in March of last year. As a result, prices on average, were 2.6% lower in March 2009 compared with March 2008.
Services prices fell by 1.7% in the year to March, while goods fell by 3.7%.
The CSO says that services prices fell by 1.7% in the year to March, while goods fell by 3.7%.
