New figures from the Central Statistics Office show that consumer prices fell by 0.2% in October compared to the same time last year due to cheaper petrol and diesel prices, as well as some cheaper food and clothing prices.
The inflation rate has been negative in ten of the last eleven months.
The CSO said that transport costs fell by 5.4% due to lower petrol and diesel prices, while the month also saw a fall in the price of cars.
These falls were partially offset by more expensive air, bus and taxi fares.
Clothing and footwear prices were down 3.3% on an annual basis due to sales, while food and non-alcoholic drink prices were down 1.3% on the back of less expensive meat, bread and milk and cheese prices.
However, the month also saw higher motor insurance premiums, while education costs rose by 3.8% and prices in hotels and restaurants rose by 1.5%.
On a monthly basis, consumer prices in October were down 0.2% from September, the CSO added.
Commenting on the figures, economist with Merrion Alan McQuaid said: “Despite the booming Irish economy, inflationary pressures as measured by the CPI are in our view likely to remain fairly well contained in the immediate future, mainly because of lower oil prices. But the cost of services like insurance and education look set to continue to rise.
“With prices falling into negative territory, the danger was that deflation became entrenched, though we don’t see this as an issue here in Ireland.
“Low inflation in Euroland will mean easier ECB monetary policy being in place for longer, which should be good news for consumers, though whether it feeds through into lower variable mortgage rates here remains debatable,” he added.