New figures from the Central Statistics Office show that consumer prices were 0.1% higher in October compared with the same time last year - the lowest annual inflation rate since July 2010.
Prices fell by 0.2% in October compared to September on the back of cheaper petrol and diesel and reduced prices in hotels and restaurants.
This compares to a rise of 0.1% the same time last year.
Today's CSO figures show that the main reasons for the annual change were a 5.3% rise in alcoholic beverages and tobacco.
Education costs rose 4.6% due to an increase in third-level costs and prices in restaurants and hotels increased by 1.8% due to more expensive alcohol prices.
Prices of clothing and footwear fell by 4.1% on an annual basis, while household equipment and furnishing prices fell by 4%, communications costs decreased by 3.8% and transport prices eased by 2.2% due to falls in petrol and diesel prices as well as cheaper car prices.
The CSO said that prices, as measured by the Harmonised Index of Consumer Prices, fell by 0.1% last month compared to the same time last year. This was the first negative reading since December 2010.
HICP fell by 0.2% in the month, which compared to a 0.1% fall in October of last year.
