Ireland's annual rate of inflation was the lowest in the EU last month, new statistics have shown.

According to Eurostat, Irish prices rose by an average of 1 per cent in the year to the end of July, well below the euro area average of 2.5 per cent and the EU rate of 2.9 per cent.

This was followed by Slovenia at 1.1 per cent and Sweden at 1.6 per cent. AT the other end of the scale, Estonia recorded the highest rate of inflation at 5.3 per cent, followed by Romania and Lithuania at 4.9 per cent and 4.6 per cent respectively.

On a monthly basis, Ireland's inflation rate was -0.2 per cent, compared to -0.6 per cent for the euro area and -0.5 per cent in the EU.

The economy also registered the lowest 12-month average at 0.3 per cent.

Throughout the euro zone, the largest year on year price increases were seen in transport, which rose 5.5 per cent 5.5; housing, which gained 5 per cent; and alcohol and tobacco, which rose by 2.9 per cent.