Inflation decreased to 6.6% in May from 7.2% in April, marking the 12th consecutive month where the annual increase in consumer prices exceeded 5%, according to the most recent Central Statistics Office (CSO) data.
Annual inflation has now dropped each of the last three months after rising to 8.5% in February.
While prices for services have increased by 9.5%, inflation rates for products have decreased to 2.9%.
Prices continue to rise, however the rate of inflation across the economy is progressively slowing down. Prices increased by 0.3% in May, bringing the annual rate to 6.6%, CSO report said.
Core inflation, which strips out energy and food, actually nudged higher than the headline rate for the first time to record an annual rate of 6.8%.
The effect of last year’s steep increases in energy prices is beginning to fade, although domestic electricity and gas prices have not come down.
However, the price of other fuels like home heating oil have come down. Petrol and diesel have also fallen in price.
However, the prices of some services have gone up. Hotel prices took a big jump of 7.5% last month as did the price of alcohol.
Package holidays also rose by just under 5% last month and are just over 18% higher than last year. Flights are a third more expensive than last year.
The price of some food products did show marginal falls last month bringing overall food inflation down to an annual rate of 12.6%.
Today’s release of the National Average Prices for May indicates the increase in food product prices over the previous 12 months.
They reveal that in May of last year, the nationwide average price of a big white sliced pan increased by 18 cents to €1.68. A brown sliced pan cost 17 cents more than it did the year before.
Irish cheddar per kilogramme increased by €1.45 to €10.55, while two litres of full fat milk increased by 35 cents to €2.22. At €3.76, butter was 40 cents more expensive per pound.
In May, the national average cost of a pint of stout was €5.50, up 37% over the previous year. A pint of beer cost €5.97, a 45 cent increase from the prior period.