Annual inflation falls to 0.7% - lowest since March 2021

A drop in energy prices has resulted in a significant fall in inflation which declined from 1.7% in the 12 months to August to 0.7% in September - the lowest level since March 2021.

This means that prices are still rising on an annual basis, but they are doing so at a much lower pace compared a surge during the cost of living crisis two years ago.

Gas prices fell by 19% over the past 12 months, home heating oil dropped by 17% and solid fuels were down 8%.

Prices of clothing and footwear were also lower, falling by 7.5%.

However, September saw price increases too as prices in hotel and restaurants rose almost 4% and alcohol and tobacco were up 3%.

Excluding energy and unprocessed food consumer prices went up by 2.4%.

Commenting on the National Average Prices, the CSO's Anthony Dawson said there were price increases in September for a 2.5kg bag of potatoes, which rose by 41 cent.

He also said a pound of butter rose by 39 cent, spaghetti per 500g inched a cent higher and two litres of full fat milk increased by a cent.

"There were decreases in the price of Irish cheddar cheese per kg (down five cent), an 800g loaf of white sliced pan (down four cent), and an 800g loaf of brown sliced pan (down one cent) when compared with September 2023," he added.