Prices rose by 2.7% in the 12 months to the end of December, according to a flash estimate for inflation published by the Central Statistics Office.
This compares to an annual increase of 3.1% in the year to November indicating the rate of increase in prices is easing.
The rate of inflation across the euro zone was 2.1% in the 12 months to November.
Energy prices in Ireland are estimated to have risen by 2.4% in the 12 months to December 2025 and food prices increased by 4%.
Excluding energy and unprocessed food, inflation in Ireland as measured by EU's Harmonised Index of Consumer prices is estimated to have risen by 2.6% since December 2024.