The annual rate of inflation fell to 2.5 per cent in December from 2.6 per cent in November, according to the latest Consumer Price Index.
The Central Statistics Office's basket of goods and services experienced falls in the cost of transport, clothes and alcohol in December.
Transport costs fell by 0.6 per cent over the month, clothing and footwear dropped by 0.5 per cent, and alcoholic beverages and tobacco fell by -0.3 per cent .
The index highlights the disparity between the goods sector, where inflation remains tame, and services, where inflation remains persistently high. In the year to December, an increase of 0.5 per cent was recorded for goods, while the corresponding rate for services was 4.2 per cent .
The most notable price changes in 2005 were in sectors closely related to rising energy costs and the public sector.
Housing, water, electricity and heating rose by 10.8 per cent, while health rose by 5.8 per cent and education by 4.9 per cent. Restaurants and hotel prices rose by 3.2 per cent on average; transport rose by 3.1 per cent.
Price falls were recorded in clothing and footwear (-1.9 per cent ), furnishings, and household equipment (-1.2 per cent ), and food and non-alcoholic beverages - which fell by 1 per cent.